Van Oriental Food, Inc. 401K Annual Fund Review: …files.constantcontact.com/6f0c700d001/22ad5c0b-9320-4cc7...Probity Advisors, Inc. 401K Annual Fund Review: 2016 March 2017 Theresa

PROBITY ADVISORS, INC®

401K Annual Fund Review: 2016

March 2017

Van Oriental Food, Inc.

PROBITY ADVISORS, INC®

Probity Advisors, Inc. 401K Annual Fund Review: 2016

March 2017

Theresa Motter


4828 Reading St.

Dallas, TX 75247

Dear Theresa,

As you may be aware, in recent years the Department of Labor has been increasingly expanding

their initiatives related to retirement plan cost transparency. As a fully disclosed, open platform

provider, Probity Advisors, Inc. has long been an advocate for transparency and for disclosure of plan

expenses and fees, yet despite the efforts of the Department of Labor, comparing plan services and

offerings and related costs are in many respects as challenging today as ever. We understand these

difficulties, and as a service to help you in your assessment of your plan and its offerings, we are

providing the enclosed benchmarking report.

Benchmarking is a fundamental component in demonstrating your compliance in monitoring your

plan’s service providers. Probity Advisors is your 3(38) investment advisor. As such, we are a

fiduciary to your plan as it relates to the plan’s investment options and the monitoring of the

underlying investment alternatives. In addition to investment advisors, a plan will typically have a

record-keeper, an administrator, a custodian, a corporate trustee, and an education specialist.

Periodically, you may also engage an attorney or other specialized consultant depending on the

circumstance. You, the sponsor, are required to periodically review the plan’s cost, to identify the

services provided, and to determine whether or not the value of benefit received is reasonable

relative to its cost. Complicating this analysis, however, is the fact that often times services may be

bundled together, making specific services and their costs more difficult to compare relative to one

another.

The goal of benchmarking is not perfection. It is rare for one plan to be exactly comparable to

another. Two companies with the same number of employees may have significantly different costs

depending on everything from average participant balance to the specific weighting of participant

elections among the plan’s underlying investment options. In some instances, having the lowest

cost plan is the sponsor’s objective, and in other instances, having the highest participation or

satisfaction may be the objective. The features and associated costs may vary in accordance.

Despite these differences, there is value in assessing your particular costs relative to an average

plan, controlling for as many of the variables as one reasonably can.

10000 North Central Expressway Suite 1350 Dallas, Texas 75231

Phone: 214.891.8131 800.818.2663 Fax: 214.891.8585

The attached benchmark report draws from data compiled by Pension Data Source Inc., an independent data provider and publisher of the 401K Averages Book. Published since 1995, the 401K Averages Book is the oldest and arguably most recognized source for non-biased, comparative 401K average cost information. In addition, Probity Advisors has collected or augmented specific plan information from your plan’s record-keeper and/or extracted such cost information from any available contracts, agreements, prospectus, and/or Morningstar databases. For the reasons noted above, some interpretation and subjectivity is inherent in analyses of this nature. There may be instances, for example, where a plan’s total expenses may differ when viewed from an accrual versus cash basis. In those cases, Probity Advisors has done its best to represent costs in the appropriate calendar year, with a disclosure made with respect to any material assumption or adjustment. It should be noted that this analysis is provided on a best efforts basis. Our analysis relies on a combination of publicly available information and data provided by the plan’s other service providers. While we generally believe the information to be accurate, we have not, nor do we have the ability to, independently validate the accuracy or completeness of the information received. Furthermore, given the interpretation and assumptions required, others could evaluate the same data differently.

We hope the analysis will serve an important role in your annual review. Your investment advisor will be reaching out to you in the next several weeks to discuss any questions you may have. In the meantime, we’d like to thank you once again for placing your confidence in us and allowing us to serve as your valued partner.

Sincerely,

Christopher T. Sorrow, CFA®, MBA

Probity Advisors, Inc.

Probity Advisors, Inc. 401K Plan Services:What You Can Expect

Comprehensive Options: Our platform provides a range of investment advice and options for participants, including 1. Do-it-for-me/Professionally managed, 2. Lifecycle/Target Date Fund, and 3. Core Funds. Features may include automatic enrollment, automatic contribution increase, qualified default investment alternative, reporting, record keeping, and more.

Proper Monitoring and Plan Benchmarking Assistance: Our ongoing monitoring ensures the investment choices remain appropriate. Our benchmarking report presents up-to-date data on comparable plans with objective analyses on a range of key metrics provided by independent, third parties.

Liability Protection: Probity may act as a 3(38) or 3(21) fiduciary, greatly satisfying plan sponsor’s liability. Both 3(38) and 3(21) advisors accept fiduciary responsibility and adhere to ERISA §404(a)’s duty to serve solely in the interest of plan participants and both are required to meet the “prudent man” standard of care.



401K Annual Fund Review: 2016Period Ending 12/31/2016

Table of Contents

Section 1: 401K Plan Industry Benchmarking

Section 2: Capital Markets Review

Section 3: Core Fund List Review & Recommendations

Section 4: Professionally Managed Models

Appendix A: Report of Independent Advisor

Appendix B: Corporate Resolution Adopting Probity Advisors, Inc. Investment Recommendations provided by Probity Advisors




This report has been compiled by Probity Advisors, Inc. This report is for informational and research purposes only. It is not intended to be construed as individually tailored advice to participants, as each individualhas different investment goals, criteria and risk tolerances. Probity Advisors relies on industry accepted, third-party data feeds and research services to generate the attached materials. As such, Probity Advisorscannot guarantee the accuracy, timeliness or completeness of the information provided. Data is based on information collected from Morningstar, Fidelity Investments, Schwab Financial Center and other industryaccepted providers of financial information. It is updated as of the date shown in the section's title, and will vary over time. Although Probity Advisors may compile certain data and provide different classes of oroptions for investments based on general risk tolerances, objectives and goals, you should consider your own investment objectives, risks, charges and expenses of the Fund or investment model carefully beforeinvesting (as the information contained herein is not intended to be construed as individually tailored advice). This and other information is contained in the Fund's Prospectus, which can be obtained by contactingthe respective mutual fund or the Plan’s custodian. You should read the Prospectus carefully before choosing a Fund. The performance information contained herein represents past performance. Pastperformance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that your investment, when redeemed, may be worth more or less than theperformance data quoted. Current performance may be higher or lower than the performance shown here. The most recent month-end performance information for the Fund may be obtained by contacting themutual fund company. The total return information does not reflect the deduction of the Sales Load that may apply if the Fund shares were purchased outside of the Plan and, if the Sales Load were reflected,performance would be lower. Performance does not include any plan level expenses such as any recordkeeping, third-party administration, advisory, education or other fees or expenses contracted for by the PlanSponsor, which may be deducted from Plan assets and may reduce a participant’s balance.

1

Source: Industry Average data from 401K Averages Book. Data is based on plan assets of $2,500,00 and 50 participants.



1.63%

1.43%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

Total Bundled

Plan Costs Comparison: % Of Plan Assets

Van Oriental Food, Inc. Industry Average

2




0.81%

0.53%

N/A

N/A

0.01%

0.08%

0.00%

0.14%

0.60%

0.40%

0.09%

0.40%

0.00% 0.50% 1.00% 1.50% 2.00%

Revenue Sharing

Net Investment

Investment Fiduciary Services/Consultant

Participant Education & Enrollment

Trustee

Recordkeeping & Administration

Plan Costs Comparison:Components of Plan Costs


3




0.05%

0.39%

0.79%

0.20%

1.35%

1.88%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

Low Average High

Range of Investment Costs: Large-Cap U.S. Equity


4




0.08%

0.49%

0.90%

0.20%

1.47%

2.06%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

Low Average High

Range of Investment Costs: Mid-Cap U.S. Equity


5




0.08%

0.52%

1.14%

0.22%

1.57%

2.10%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

Low Average High

Range of Investment Costs:Small-Cap U.S. Equity


6




0.11%

0.60%

1.24%

0.26%

1.62%

2.13%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

Low Average High

Range of Investment Costs:International Equity


7




0.07%

0.48%

0.89%

0.14%

1.24%

1.70%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

Low Average High

Range of Investment Costs: Fixed Income


8




0.14% 0.15% 0.16%0.14%

1.33%

1.85%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

Low Average High

Range of Investment Costs: Target Date


9




0.16% 0.16% 0.16%0.29%

1.11%

1.73%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

Low Average High

Range of Investment Costs: Stable Asset/Money Market


10




0.12%

0.68%

1.23%

0.17%

1.61%

2.30%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

Low Average High

Range of Investment Costs: Specialty Funds


11




12

U.S. Equity Size & Style Returns

Q4 2016 Total Return

Value Blend Growth

Large 6.68% 3.82% 1.01%

Mid 5.52% 3.21% 0.46%

Small 14.07% 8.83% 3.57%

U.S. Fixed Income Maturity & Quality Returns

Q4 2016 Total Return

Short Intermediate Long

Govt. -1.14% -2.18% -11.50%

Corporate -1.05% -2.98% -5.02%

*Total returns greater than 1 year are annualized. Data thru 12/31/2016. Source: Morningstar

Benchmark Index Asset Class Q4 2016 1-Year 3-Year* 5-Year*

S&P 500 TR Large Blend 3.82% 11.96% 8.87% 14.66%

Russell Mid Cap TR Mid Blend 3.21% 13.80% 7.92% 14.72%

Russell 2000 TR Small Blend 8.83% 21.31% 6.74% 14.46%

MSCI EAFE NR Foreign Developed Stocks -0.71% 1.00% -1.60% 6.53%

MSCI EM NR Emerging Market Stocks -4.16% 11.19% -2.55% 1.28%

Barclays U.S. Agg Bond TR U.S. Fixed Income -2.98% 2.65% 3.03% 2.23%

2016 Equity and Fixed Income Performance


401K Annual Fund Review: 2016 13

Probity Advisors 401K Fund Performance

Fund Name and Classification Performance (Total Return %) Risk Measures (%) Expense (%)

Fund Name Asset Class TickerFund

TypeQ4 2016 1-Year 3-Year* 5-Year*

Sharpe

Ratio

3-Year

Alpha

3-Year

Std.

Dev.

3-Year

Expense

Ratio

Domestic Equity

Clearbridge Large Cap Growth I Large Growth SBLYX Active 0.88 7.19 10.05 17.32 0.91 1.31 11.07 0.78

Vanguard Growth Index Adm Large Growth VIGAX Index -0.42 6.12 7.60 14.05 0.66 -1.64 11.85 0.08

Vanguard 500 Index Adm Large Blend VFIAX Index 3.82 11.93 8.84 14.62 0.83 -0.03 10.74 0.05

Principal Capital Appreciation Inst Large Blend PWCIX Active 2.95 9.25 8.03 13.84 0.76 -0.67 10.73 0.47

Vanguard Value Index Adm Large Value VVIAX Index 7.51 16.86 9.45 14.98 0.90 0.97 10.50 0.08

Putnam Equity Income R6 Large Value PEQSX Active 5.59 14.02 7.76 14.57 0.75 -0.68 10.55 0.55

Delaware Value Inst Large Value DDVIX Active 3.60 14.78 9.15 14.72 0.88 1.05 10.43 0.73

JPMorgan Intrepid Mid Cap Select Mid-Cap Blend WOOPX Active 2.92 12.12 6.85 14.74 0.61 -2.07 11.73 0.90

Vanguard Mid Cap Index Adm Mid-Cap Blend VIMAX Index 2.14 11.22 7.67 14.37 0.67 -1.30 11.79 0.08

Aberdeen Small Cap Inst Small Growth GSCIX Active 10.83 23.68 12.90 18.62 1.01 4.75 12.68 1.14

Vanguard Small Cap Growth Index Adm Small Growth VSGAX Index 1.42 10.73 3.94 12.80 0.33 -5.07 14.22 0.08

Northern Small Cap Core Small Blend NSGRX Active 8.98 20.72 7.17 14.88 0.53 -2.07 14.88 0.75

Vanguard Small Cap Index Adm Small Blend VSMAX Index 6.10 18.30 7.01 14.83 0.55 -2.34 13.85 0.08

Delaware Small Cap Value Instl Small Value DEVIX Active 13.66 31.35 9.18 14.35 0.65 -0.52 14.97 0.97

Vanguard Small Cap Value Index Adm Small Value VSIAX Index 9.98 24.78 9.56 16.36 0.71 -0.06 14.01 0.08







Sharpe

Ratio

3-Year

Alpha

3-Year

Std.

Dev.

3-Year

Expense

Ratio

International Equity

Vanguard Total Intl Stock Index Adm Foreign Large Blend VTIAX index -1.93 4.67 -1.34 5.50 -0.06 0.31 12.11 0.11

American Funds EuroPacific Gr R6 Foreign Large Growth RERGX Active -4.15 1.01 -0.60 7.22 -0.01 0.83 11.20 0.50

Lazard International Equity Instl Foreign Large Blend LZIEX Active -4.67 -4.18 -2.32 6.68 -0.16 -0.90 11.42 0.86

Northern Emerging Markets Equity Index Emerging Markets NOEMX Index -5.14 10.63 -3.19 0.89 -0.13 -0.88 16.08 0.30

Morgan Stanley Inst Emerging Mkts I Emerging Markets MGEMX Active -7.89 6.73 -2.94 1.74 -0.15 -1.02 14.28 1.24

Domestic Bonds

PIMCO Long Duration Total Return Instl Long-Term Bond PLRIX Active -7.98 7.18 7.20 4.43 0.82 -0.87 8.80 0.50

Vanguard Long-Term Bond Index Inv Long-Term Bond VBLTX Index -8.30 6.41 7.13 3.92 0.78 -1.20 9.15 0.16

Commerce Bond Intermediate-Term Bond CFBNX Active -2.01 3.97 3.29 3.28 1.16 0.64 2.70 0.67

JPMorgan Core Plus Bond R6 Intermediate-Term Bond JCPUX Active -2.41 4.25 3.63 3.70 1.22 0.86 2.84 0.40

Vanguard Short-Term Bond Index Adm Short-Term Bond VBIRX Index -1.12 1.49 1.22 1.18 0.77 -0.16 1.41 0.09

Vanguard Short-Term Govt. Bond Idx Adm Short-Term Govt. Bond VSBSX Index -0.45 0.78 0.60 0.49 0.57 -0.17 0.80 0.07

Eaton Vance High Income Opportunities I High-Yield Bond EIHIX Active 1.41 12.84 5.08 7.87 1.02 3.85 4.85 0.61

Federated Instl High Yield Bond Instl High-Yield Bond FIHBX Active 1.13 15.09 5.05 7.45 0.90 3.47 5.52 0.49

American Century Infl-Adj Bond Inv Inflation-Protected Bond ACITX Active -2.53 4.72 1.71 0.40 0.38 -1.73 4.28 0.47







Sharpe

Ratio

3-Year

Alpha

3-Year

Std.

Dev.

3-Year

Expense

Ratio

World Bonds

Goldman Sachs Global Income Instl World Bond GSGLX Active -2.02 3.44 3.62 3.88 1.43 1.43 2.40 0.69

Payden Emerging Markets Bond Emerging Markets Bond PYEMX Active -3.63 11.45 5.19 5.22 0.81 2.32 6.31 0.75

Goldman Sachs Emerging Mkt Debt Instl Emerging Markets Bond GSDIX Active -4.25 10.33 5.87 5.96 0.92 2.86 6.26 0.89

Real Estate

Cohen & Steers Real Estate Securities A Real Estate CSEIX Active -3.09 7.75 15.19 13.31 1.05 12.95 14.35 1.23

Vanguard REIT Index Adm Real Estate VGSLX Index -2.97 8.50 13.13 11.78 0.88 11.40 15.17 0.12

Money Market

Fidelity Treasury Only Money Market Money Market FDLXX Active 0.01 0.01 0.01 0.01 -2.93 0.16

Target Date Series

Vanguard Target Retirement Income Inv Target Date Retirement VTINX Active -0.99 5.25 3.50 4.91 0.91 1.42 3.70 0.14

Vanguard Target Retirement 2010 Inv Target Date 2000-2010 VTENX Active -1.02 5.22 3.61 5.97 0.84 1.23 4.17 0.14

Vanguard Target Retirement 2015 Inv Target Date 2011-2015 VTXVX Active -0.55 6.16 4.04 7.22 0.72 0.88 5.49 0.14

Vanguard Target Retirement 2020 Inv Target Date 2016-2020 VTWNX Active -0.18 6.95 4.39 8.17 0.67 0.68 6.53 0.14

Vanguard Target Retirement 2025 Inv Target Date 2021-2025 VTTVX Active 0.11 7.48 4.53 8.86 0.62 0.40 7.33 0.15

Vanguard Target Retirement 2030 Inv Target Date 2026-2030 VTHRX Active 0.42 7.85 4.58 9.50 0.58 0.08 8.11 0.15







Sharpe

Ratio

3-Year

Alpha

3-Year

Std.

Dev.

3-Year

Expense

Ratio

Target Date Series

Vanguard Target Retirement 2035 Inv Target Date 2031-2035 VTTHX Active 0.78 8.26 4.66 10.15 0.54 -0.25 8.96 0.15

Vanguard Target Retirement 2040 Inv Target Date 2036-2040 VFORX Active 1.13 8.73 4.66 10.51 0.50 -0.60 9.72 0.16

Vanguard Target Retirement 2045 Inv Target Date 2041-2045 VTIVX Active 1.24 8.87 4.72 10.54 0.51 -0.57 9.78 0.16

Vanguard Target Retirement 2050 Inv Target Date 2046-2050 VFIFX Active 1.25 8.85 4.72 10.54 0.51 -0.57 9.77 0.16

Vanguard Target Retirement 2055 Inv Target Date 2051+ VFFVX Active 1.26 8.88 4.68 10.51 0.50 -0.61 9.77 0.16

Vanguard Target Retirement 2060 Inv Target Date 2051+ VTTSX Active 1.25 8.84 4.67 0.50 -0.62 9.78 0.16

*Total returns greater than 1 year are annualized. Performance and Risk Measures thru 12/31/2016 Source: Morningstar



Probity Advisors Funds MatrixMutual Fund Asset Class

Morningstar Rating

Fund Historical

Performance

Fund Performance vs. Peers

Risk-Adjusted Performance

ValueAdded

Fund VolatilityFund

Trading Activity

Correlation to Benchmark

Market Sensitivity

Demonstrated Track Record

Fund Fees

Fund Size

Manager Tenure

Clearbridge Large Cap Growth I Large Growth Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass

Vanguard Growth Index Adm Large Growth Pass Acceptable Pass Pass Acceptable Pass Pass Pass Monitor Pass Pass Pass Pass

Principal Capital Appreciation Inst Large Blend Pass Acceptable Pass Pass Acceptable Pass Pass Pass Pass Pass Pass Pass Pass

Vanguard 500 Index Admiral Large Blend Pass Acceptable Pass Pass Acceptable Pass Pass Pass Pass Pass Pass Pass Fail

Delaware Value Inst Large Value Pass Pass Pass Pass Pass Pass Pass Acceptable Pass Pass Pass Pass Pass

Vanguard Value Index Adm Large Value Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass

Putnam Equity Income R6 Large Value Pass Acceptable Pass Pass Acceptable Pass Pass Pass Pass Pass Pass Pass Pass

JPMorgan Intrepid Mid Cap Select Mid-Cap Blend Pass Acceptable Acceptable Pass Monitor Pass Acceptable Pass Acceptable Pass Pass Pass Pass

Vanguard Mid Cap Index Adm Mid-Cap Blend Pass Acceptable Pass Pass Acceptable Pass Pass Pass Monitor Pass Pass Pass Pass

Aberdeen Small Cap Inst Small Growth Pass Pass Pass Pass Pass Pass Pass Acceptable Pass Pass Pass Pass Pass

Vanguard Small Cap Growth Index Adm Small Growth Pass Acceptable Acceptable Pass Monitor Pass Pass Pass Acceptable Pass Pass Pass Pass

Northern Small Cap Core Small Blend Pass Pass Acceptable Pass Acceptable Pass Pass Pass Monitor Pass Pass Pass Pass

Vanguard Small Cap Index Adm Small Blend Pass Pass Acceptable Pass Monitor Pass Pass Pass Monitor Pass Pass Pass Fail

Delaware Small Cap Value Instl Small Value Pass Pass Pass Pass Acceptable Pass Pass Pass Fail Pass Pass Pass Pass

Vanguard Small Cap Value Index Adm Small Value Pass Pass Pass Pass Acceptable Pass Pass Pass Monitor Pass Pass Pass Fail

American Funds EuroPacific Gr R6 Foreign Large Growth Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass

Lazard International Equity Instl Foreign Large Blend Pass Acceptable Acceptable Acceptable Monitor Pass Pass Monitor Pass Pass Pass Pass Pass

Vanguard Total Intl Stock Index Admiral Foreign Large Blend Pass Pass Pass Pass Pass Acceptable Pass Pass Pass Pass Pass Pass Pass

Morgan Stanley Inst Emerging Mkts I Emerging Markets Pass Acceptable Acceptable Pass Acceptable Pass Pass Pass Pass Pass Pass Pass Pass

Northern Emerging Markets Equity Index Emerging Markets Pass Acceptable Monitor Pass Acceptable Monitor Pass Pass Acceptable Pass Pass Pass Pass

Vanguard Long-Term Bond Index Inv Long-Term Bond Pass Pass Acceptable Fail Fail Fail Pass Pass Fail Pass Pass Pass Pass

PIMCO Long Duration Total Return Instl Long-Term Bond Pass Pass Acceptable Acceptable Monitor Monitor Acceptable Pass Fail Pass Acceptable Pass Pass

Commerce Bond Intermediate-Term Bond Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass

JPMorgan Core Plus Bond R6 Intermediate-Term Bond Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass

Vanguard Short-Term Bond Index Adm Short-Term Bond Pass Acceptable Acceptable Acceptable Acceptable Acceptable Pass Pass Pass Pass Pass Pass Pass

Vanguard Short-Term Govt Bd Idx Adm Short Government Bond Pass Monitor Acceptable Pass Acceptable Pass Pass Pass Pass Pass Pass Pass Pass

Federated Instl High Yield Bond Instl High-Yield Bond Pass Pass Pass Pass Pass Acceptable Pass Pass Pass Pass Pass Pass Pass

Eaton Vance High Income Opportunities I High-Yield Bond Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass

American Century Infl-Adj Bond Inv Inflation-Protected Bond Pass Acceptable Pass Pass Monitor Monitor Pass Pass Acceptable Pass Pass Pass Pass

Goldman Sachs Global Income Instl World Bond Pass Pass Pass Pass Pass Pass Monitor Pass Pass Pass Pass Pass Pass

Payden Emerging Markets Bond Emerging Markets Bond Pass Acceptable Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass Pass

Goldman Sachs Emerging Mkt Debt Instl Emerging Markets Bond Pass Pass Pass Pass Pass Pass Pass Pass Acceptable Pass Pass Pass Pass

Cohen & Steers Real Estate Securities A Real Estate Pass Pass Pass Pass Pass Acceptable Monitor Acceptable Pass Pass Pass Pass Pass

Vanguard REIT Index Adm Real Estate Pass Acceptable Pass Pass Pass Fail Pass Fail Pass Pass Pass Pass Pass



Section 3: Fund List Review & Recommendations



19

Core Fund List & Diversification:

The Investment Policy Statement requires that suitable and diverse investment options are made available to Participants. The following tables illustrate the Q1 2017 Core Fund List with respect to their various equity, fixed income and specialty asset classes.

Domestic and International Equity Asset Classes

Stocks Value Blend Growth

U.S. Large Cap

Delaware Value Inst

Putnam Equity Income R6

Vanguard Value Index Admiral

Principal Capital Appreciation Inst

Vanguard 500 Index Adm

Clearbridge Large Cap Growth I

Vanguard Growth Index Adm

U.S. Mid CapJPMorgan Intrepid Mid Cap Select

Vanguard Mid Cap Index Adm

U.S. Small CapDelaware Small Cap Value Instl

Vanguard Small Cap Value Index Adm

Northern Small Cap Core

Vanguard Small Cap Index Adm

Aberdeen Small Cap Inst

Vanguard Small Cap Growth Index Adm

Foreign DevelopedLazard International Equity Instl

Vanguard Total Intl Stock Index AdmAmerican Funds EuroPacific Gr R6

Emerging MarketsMorgan Stanley Inst Emerging Mkts I

Northern Emerging Markets Equity Index

Domestic and International Fixed Income Asset Classes

Bonds Short-Term Intermediate Long-Term

Government Vanguard Short-Term Govt Bd Idx Adm

Investment Grade Vanguard Short-Term Bond Index AdmCommerce Bond

JPMorgan Core Plus Bond R6

PIMCO Long Duration Total Return Instl

Vanguard Long-Term Bond Index Inv

High YieldEaton Vance High Income Opportunities I

Federated Instl High Yield Bond Instl

International Bonds

Goldman Sachs Global Income Instl

Payden Emerging Markets Bond

Goldman Sachs Emerging Mkt Debt Instl



Specialty FundsSpecialty funds are alternative assets that provide investors access to money market, inflation-protection, and target date retirement fund options.

Specialty Asset Classes Fund

Inflation Protected Bonds American Century Inflation-Adjusted Bond Inv

Money Market Fidelity Treasury Only Money Market Fund

Real EstateCohen & Steers Real Estate Securities A

Vanguard REIT Index Adm

Target Date Funds Vanguard Target Date Series



21

Core Fund List Review & Scorecard: Actively Managed Funds

This section highlights both the quantitative and qualitative factors we use to analyze the active mutual funds included as part of your plan’s

core fund list. Actively managed mutual fund review criterion vary significantly from passive or index fund reviews, and for that reason we

bifurcate these fund reviews along these lines.

When reviewing actively managed funds, our initial screen is applied by our researchers against the universe of mutual funds available from

Morningstar Office’s mutual fund database. Funds that pass the initial screen are then subjected to a nine factor scoring system detailed

below.

Test Criteria

Morningstar Rating The fund must be ranked 3 or above by Morningstar.

Total Ret % Category Rank 3 Yr. The fund must be ranked in the top third of its category.

Sharpe 3 Yr. The fund's 3-year sharpe ratio must be greater than or equal to the category average.

Alpha 3 Yr. The fund's 3-year alpha must be greater than or equal to zero.

Std. Dev 3 Yr. The fund's 3-year standard deviation must be less than or equal to the category average.

R-Squared 3 Yr. The fund's 3-year R-squared must be greater than or equal to the category average.

Turnover Ratio The fund's turnover ratio must be less than or equal to the category average.

Expense Ratio The fund's annual expense ratio must be less than or equal to the category average.

Total Assets The fund must have at least $100 million in assets.

Lastly, the funds receiving the top results are then analyzed using a variety of qualitative metrics in order to select the best in class fund for each category.



22

Fund Name: ClearBridge Large Cap Growth I (Ticker: SBLYX) Manager: Legg Mason

Asset Class: Large Growth Fund Type: Active

Morningstar Rating: Status: Current Fund Option

Diagnostics Report

ClearBridge Large Cap Growth I passes 9 of 9 of our investable fund criteria. For calendar year 2016, ClearBridge Large Cap Growth ranked in the top quartile of its peer

group. On a 3-year and 5-year basis, the fund ranked in the top 5% of its category average. As of the end of the fourth quarter, the fund managers’ top three sectors

included information technology, healthcare, and consumer discretionary.

Fund DescriptionInvests primarily in high quality large-cap companies that are dominant in their industries. The fund utilizes a fundamental, bottom-up research process to identifysecurities with the potential to grow market share and earnings in the U.S. and overseas. The emphasis is on building long-term capital growth in a portfolio that isdiversified to help manage risk.

Category Rank Risk/Return Value Added Volatility

The fund’s 3-year sharpe ratio is0.91%, exceeding the large growthcategory average of 0.51%.

The fund’s 3-year alpha is 1.31%,above the large growth categoryaverage of -3.04%.

Correlation Turnover Expense Assets

The fund’s turnover ratio is 13%,below the large growth categoryaverage of 61.7%.

The fund’s expense ratio is 0.78%,below the large growth categoryaverage of 1.16%.

The fund has $5.2 billion inassets under management.

The fund’s 3-year r-squared is90.02%, above the large growthcategory average of 83.21%.

Morningstar Rating

The fund is ranked in the top 2% of its category.



The fund has a 5-star Morningstar rating.

Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor AcceptableMonitor

Fail Pass

The fund’s 3-year standard deviationis 11.07%, below the large growthcategory average of 12.12%.

23

ClearBridge Large Cap Growth Fund Class I SBLYX Morningstar Analyst Rating—

NAV $ NAV Day Change % Yield TTM % Total Assets $ Status Min. Inv. Load Expenses Morningstar Rating TM Category Investment Style

38.71 [-0.17 | -0.44 0.31 6 Open $1 None 0.78% QQQQQ Large Growth 7 Large Growth

Growth of 10,000 01-30-2007 - 01-30-2017

5K

11K

17K

23K

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

ClearBridge Large CapGrowth Fund Class I$23,272.26Large Growth $19,029.40S&P 500 TR USD $19,909.86

Investment Strategy

The investment seeks long-term capital growth. Under normal circumstances, the fund invests at least 80% of its net assets,plus borrowings for investment purposes, if any, in equity securities or other instruments with similar economic characteristicsof U.S. companies with large market capitalizations.

Performance 01-30-2017

YTD 1 Mo 1 Yr 3Yr Ann 5Yr Ann 10Yr Ann

Growth of 10,000 10,348 10,348 11,765 14,048 21,742 23,133Fund 3.48 3.48 17.65 12.00 16.80 8.75+/- S&P 500 TR USD 1.49 1.49 -2.50 1.36 2.71 1.68+/- Category -0.37 -0.37 2.44 4.27 4.35 1.60% Rank in Cat 56 56 25 2 1 12# of Funds in Cat 1,492 1,492 1,437 1,290 1,136 795* Currency is displayed in USD

Top Holdings 12-31-2016Weight % Last Price Day Chg % 52 Week Range

T Amazon.com Inc 4.54 824.30 USD -0.69 [ 474.00 - 847.21

T Microsoft Corp 3.44 64.63 USD -0.75 [ 48.03 - 65.91

T Alphabet Inc C 3.00 796.83 USD -0.65 [ 663.06 - 841.95

T Schlumberger Ltd 2.93 83.64 USD 0.06 ] 66.10 - 87.84

T UnitedHealth Group Inc 2.91 160.65 USD -0.85 [ 108.83 - 164.00

% Assets in Top 5 Holdings 16.82

TIncrease YDecrease RNew to Portfolio

Top Sectors 12-31-2016Fund 3 Yr High 3 Yr Low Cat Avg

a Technology 26.63 27.70 24.53 27.99

d Healthcare 23.92 23.92 22.72 16.33

t Consumer Cyclical 15.32 15.32 14.86 18.06

y Financial Services 12.17 13.21 10.70 10.91

p Industrials 7.57 9.89 7.57 10.23

Fund Cat Avg

0 10 20 30 40

Dividend and Capital Gains DistributionsDistributionDate

DistributionNAV

Long-TermCapital Gain

Short-TermCaptial Gain

Return ofCapital

DividendIncome

DistributionTotal

12-08-2016 37.63 0.6000 0.0800 0.0000 0.1200 0.800012-10-2015 35.62 0.6700 0.2800 0.0000 0.1000 1.050012-11-2014 33.13 1.7200 0.2800 0.0000 0.0000 2.000012-12-2013 29.73 2.3600 0.1000 0.0000 0.0000 2.460012-13-2012 24.44 1.5600 0.0700 0.0000 0.0000 1.6300

3 Year Average Morningstar Risk Measures

Risk vs. Category -Avg

Low Avg High

(1315)

Return vs. Category +Avg(1315)

Pillars

Process — —Performance — —People — —Parent — —Price — —

Rating .

Style Map

DeepVal

CoreVal

Core CoreGrow

HighGrow

Micro

Small

Medium

Large

Giant Weighted Averageof holdings

75% of fund’s stockholdings

Asset Allocation

Asset Class % Net

Cash 3.95US Stock 92.74Non US Stock 3.31Bond 0.00Other 0.00

ManagementStart Date

Peter Bourbeau 07-15-2009Margaret B. Vitrano 10-11-2012

Release date 01-31-2017

©2017 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. Data as originally reported. Theinformation contained herein is not represented or warranted to be accurate, correct, complete, or timely. This report is for information purposes only, and should not be considered a solicitation to buy or sell any security.Redistribution is prohibited without written permission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. ß

®

Page 1 of 11Release date 01-31-2017


®

Page 1 of 11

24

Fund Name: Principal Capital Appreciation Inst (Ticker: PWCIX) Manager: Principal Funds

Asset Class: Large Blend Fund Type: Active


Diagnostics Report

Principal Capital Appreciation Inst passes 8 of 9 of our investable fund criteria. The fund scores within an acceptable range for value added. As of 12/31/2016, top sector

holdings included information technology (18.5%), financial services (15.5%), and healthcare (13.2%).

Fund DescriptionSeeks to provide long-term growth of capital by investing in equity securities of companies with any market capitalization. Managers tend to have greater exposure tolarge market capitalization companies than small or medium market capitalization companies. The fund invests in equity securities with value and/or growthcharacteristics.



The fund’s expense ratio is0.47%, below the large blendcategory average of 1.01%.


Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s 3-year sharpe ratio is0.76%, exceeding the large blendcategory average of 0.64%.

The fund’s 3-year alpha is -0.67%,above the large blend categoryaverage of -1.88%.

The fund’s 3-year standard deviationis 10.7%, below the large blendcategory average of 11.1%

The fund’s 3-year r-squared is97.8%, above the large blendcategory average of 93.2%.

The fund’s turnover ratio is34.5%, below the large blendcategory average of 62.4%.

25

Principal Capital Appreciation Fund Institutional Class PWCIX Morningstar Analyst Rating—

NAV $ NAV Day Change % Yield TTM % Total Assets $ Bil Status Min. Inv. Load Expenses Morningstar Rating TM Category Investment Style

57.02 [-0.33 | -0.58 1.29 2.5 Open — None 0.47% QQQQ Large Blend 4 Large Blend

Growth of 10,000 01-30-2007 - 01-30-2017

5K

11K

16K

21K

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Principal CapitalAppreciation FundInstitutional Class$21,160.22Large Blend $17,496.75S&P 500 TR USD $19,909.86

Investment Strategy

The investment seeks to provide long-term growth of capital. The fund invests primarily in equity securities of companies withany market capitalization, but has a greater exposure to large market capitalization companies than small or medium marketcapitalization companies. It invests in equity securities with value and/or growth characteristics and constructs an investmentportfolio that has a "blend" of equity securities with these characteristics. Investing in value equity securities is an investmentstrategy that emphasizes buying equity securities that appear to be undervalued.



Growth of 10,000 10,215 10,215 11,738 13,276 18,622 21,046Fund 2.15 2.15 17.38 9.90 13.24 7.72+/- S&P 500 TR USD 0.16 0.16 -2.77 -0.74 -0.86 0.66+/- Category 0.29 0.29 -1.49 1.37 0.73 1.56% Rank in Cat 28 28 68 25 42 7# of Funds in Cat 1,492 1,492 1,385 1,233 1,086 808* Currency is displayed in USD


Apple Inc 3.40 121.12 USD -0.36 [ 89.47 - 122.44Microsoft Corp 2.60 64.45 USD -1.01 [ 48.03 - 65.91Verizon Communications Inc 2.20 49.31 USD -0.08 [ 46.01 - 56.95Wells Fargo & Co 2.13 56.06 USD 0.00 [ 43.55 - 58.02

T The Kroger Co 1.85 33.90 USD 0.92 ] 28.71 - 40.91




a Technology 18.52 20.62 18.52 18.14


d Healthcare 13.18 16.72 13.18 14.11


p Industrials 10.79 10.79 10.06 11.52

Fund Cat Avg

0 5 10 15 20


DistributionNAV



Return ofCapital

DividendIncome

DistributionTotal

12-22-2016 56.18 0.0000 0.0000 0.0000 0.7900 0.790012-20-2016 57.20 5.0900 0.0000 0.0000 0.0000 5.090012-21-2015 55.81 0.0000 0.0000 0.0000 0.8700 0.870012-17-2015 57.24 2.3500 0.0000 0.0000 0.0000 2.350012-19-2014 58.30 0.0000 0.0000 0.0000 0.7200 0.7200


Risk vs. Category Avg

Low Avg High

(1255)

Return vs. Category High(1255)

Pillars


Rating .

Style Map

DeepVal

CoreVal

Core CoreGrow

HighGrow

Micro

Small

Medium

Large



Asset Allocation

Asset Class % Net



Daniel R. Coleman 05-19-2010Theodore Jayne 09-30-2015



®



®

Page 1 of 11

26

Fund Name: Putnam Equity Income Fund Class R6 (Ticker: PEQSX) Manager: Putnam

Asset Class: Large Value Fund Type: Active


Diagnostics Report

Principal Capital Appreciation Inst passes 8 of 9 of our investable fund criteria. The fund scores within an acceptable range for value added. As of 12/31/2016, top sector

holdings included information technology (18.5%), financial services (15.5%), and healthcare (13.2%). Entering the new calendar year, the fund managers are focusing on

adding defensive names which according to their research are more attractively valued relative to their more cyclical counterparts.

Fund DescriptionThe fund managers invest in large dividend-paying stocks whose stocks are priced below their long-term potential, and where there may be a catalyst for positive change.Managers utilize a quantitative research strategy with fundamental investment research to find opportunities and manage risk.



The fund’s expense ratio is0.56%, below the large valuecategory average of 1.08%.


Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s 3-year sharpe ratio is0.75%, exceeding the large valuecategory average of 0.64%.

The fund’s 3-year alpha is -0.68%,above the large value categoryaverage of -1.71%.

The fund’s 3-year standard deviationis 10.55%, below the large valuecategory average of 11.34%.

The fund’s 3-year r-squared is95.28%, above the large valuecategory average of 87.91%.

The fund’s turnover ratio is15%, below the large valuecategory average of 60.23%.

27

Data through December 31, 2016 FINRA members: For internal or institutional use only.

Putnam Equity Income R6 TickerPEQSX

Yield1.8%

Total Assets$6,302 mil

Mstar CategoryLarge Value

Benchmark 1: Russell 1000 Value TR USDBenchmark 2: S&P 500 TR USD

Morningstar Analyst Rating 09-27-16

´Morningstar Pillars

Process ∞ PositivePerformance ∞ PositivePeople ¶ NeutralParent ¶ NeutralPrice ∞ Positive

Morningstar Analyst RatingMorningstar evaluates mutual funds based on five key pillars, which itsanalysts believe lead to funds that are more likely to outperform over thelong term on a risk-adjusted basis.

Analyst Rating Spectrum

Œ „ ´ ‰ Á

Pillar Spectrum

∞ Positive § Negative ¶ Neutral

10.0

12.0

14.0

16.0

18.0

Historical ProfileReturnRiskRating

AverageBelow AvgQQQQAbove Avg

1 1 1 1 1 1 1 1 Investment StyleEquity

Growth of $10,000

Investment Values ofFundInvestment Values ofBenchmark 1

* & * ( Performance Quartile(within Category)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12-16 History. . . . . . 16.99 20.48 21.04 19.25 21.35 NAV. . . . . . . 32.28 12.86 -2.77 14.02 Total Return %. . . . . . . -0.24 -0.59 1.05 -3.32 +/- Bmark 1. . . . . . . -0.10 -0.83 -4.16 2.06 +/- Bmark 2. . . . . . . 3.02 2.03 1.77 2.03 Income Return %. . . . . . . 29.27 10.84 -4.55 12.00 Capital Return %. . . . . . . 39 15 35 54 Total Rtn % Rank Cat. . . . . . 0.25 0.51 0.41 0.37 0.39 Income $. . . . . . 0.50 1.44 1.67 0.85 0.18 Capital Gains $. . . . . . 0.24 0.56 0.56 0.55 0.28 Expense Ratio %. . . . . . 1.09 2.03 1.80 1.92 1.01 Income Ratio %. . . . . . 57 34 29 22 . Turnover Rate %. . . . . . 0 164 391 378 . Net Assets $mil

Performance 12-31-161st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total

2012 — — — 3.84 —2013 11.90 3.30 4.49 9.52 32.282014 2.81 5.31 -0.49 4.76 12.862015 1.40 0.15 -8.05 4.13 -2.772016 0.39 3.28 4.13 5.60 14.02

Trailing TotalReturn%

+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 5.60 -1.08 1.78 66 10,5606 Mo 9.97 -0.42 2.14 57 10,9971 Yr 14.02 -3.32 2.06 54 11,4023 Yr Avg 7.76 -0.83 -1.12 29 12,5125 Yr Avg — — — — —10 Yr Avg — — — — —15 Yr Avg — — — — —

Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat3 Yr (estimated) 5.93 30 1.69 575 Yr (estimated) — — — —10 Yr (estimated) — — — —

Potential Capital Gain Exposure: 15% of assets

Rating and RiskTimePeriod

Load-AdjReturn %

MorningstarRtn vs Cat

MorningstarRisk vs Cat

MorningstarRisk-Adj Rating

1 Yr 14.023 Yr 7.76 Avg -Avg QQQQ5 Yr — — — —10 Yr — — — —Incept 14.70

Other Measures Standard Index Best Fit Index

Alpha -0.7 -0.4Beta 0.96 0.95R-Squared 95 97

Standard Deviation 10.55Mean 7.76Sharpe Ratio 0.75

Portfolio Analysis 09-30-16Total Stocks: 107Share change since 06-30-16 Sector YTD Ret % % AssetsTMicrosoft Corp Technology 14.65 2.76YNorthrop Grumman Corp Industrl 25.04 2.75TEli Lilly and Co Hlth Care -10.29 2.57TJohnson & Johnson Hlth Care 15.23 2.26TExxon Mobil Corp Energy 19.62 2.24TJPMorgan Chase & Co Finan Svcs 33.47 2.24TAT&T Inc Comm Svcs 29.18 2.16TCitigroup Inc Finan Svcs 15.65 2.12TComcast Corp Class A Comm Svcs 24.76 2.03TWells Fargo & Co Finan Svcs 4.17 1.77TBank of America Corporati Finan Svcs 32.80 1.72TMarathon Oil Corp Energy 39.08 1.54TAlphabet Inc C Technology — 1.48TPhilip Morris Internation Cnsmr Def 8.76 1.43TL-3 Communications Holdin Industrl 29.62 1.40TApple Inc Technology 12.15 1.31TCVS Health Corp Hlth Care -17.55 1.29TAmerican International Gr Finan Svcs 7.46 1.23THoneywell International I Industrl 14.74 1.20TIntel Corp Technology 8.30 1.20

Current Investment Style

LargeM

idSm

all

Value Blend Growth Market Cap %Giant 44.8Large 32.4Mid 20.0Small 2.7Micro 0.0Avg $mil:55,320

Value Measures Rel Category

Price/Earnings 17.37 1.03Price/Book 1.86 0.92Price/Sales 1.75 1.17Price/Cash Flow 8.24 1.00Dividend Yield % 2.62 0.90

Growth Measures % Rel Category

Long-Term Erngs 8.24 1.06Book Value 1.44 1.10Sales -4.23 2.84Cash Flow -5.00 2.12Historical Erngs 4.63 1.21

Profitability %

Return on Equity 14.33Return on Assets 4.36Net Margin 9.86

SectorWeightings

% ofStocks

RelBmark 1

h Cyclical 33.36 0.87r BasicMat 2.53 0.88t CnsmrCyc 7.66 1.67y FinanSvcs 19.72 0.75u Real Est 3.45 0.74

j Sensitive 40.25 1.08i CommSrvs 8.80 2.14o Energy 8.52 0.62p Industrl 10.53 1.06a Technlgy 12.40 1.30

k Defensive 26.38 1.08s CnsmrDef 7.95 0.94d Hlthcare 13.40 1.35f Utilities 5.03 0.85

Composition - Net

Cash 2.6Stocks 95.2Bonds 0.0Other 2.1Foreign 4.8(% of Stock)

Morningstar's Take by Alec Lucas 09-27-16Putnam Equity Income pursues a dividend-focusedstrategy through a mix of quant screens and fundamentalanalysis. The process was effective for 12 years underformer manager Bart Geer and continues to work wellunder current lead manager Darren Jaroch. The fundearns a Morningstar Analyst Rating of Bronze.

Jaroch had a history with the fund prior to taking overin 2012. As an analyst, he helped build the fund’s quantmodel in the early 2000s. He deserves partial credit forthe fund’s success under Geer, and he’s proved a worthysuccessor. The fund’s 13.4% annualized gain from hisstart date through August 2016 is in line with the Russell1000 Value Index and ranks in the large-value MorningstarCategory’s top quintile.

Jaroch has achieved this record amid significantchange in Putnam’s analyst lineup. Between early 2014and mid-2016, there were nine changes to the 44-personanalyst team, including three in the technology sector andtwo in energy. Analysts are important to the processbecause they do bottom-up research on firms scoring inthe top quintile of the fund’s quant model. Jaroch, though,ultimately picks the stocks. He prefers cash-generative

businesses with underappreciated prospects but alsobuys stocks to minimize the chance the fund will straytoo far from the index.

The June 2016 portfolio is representative. Itcombined a nearly 190-basis-point overweighting intop-10 holding Comcast CMCSA with an index weightingin top-20 holding Verizon VZ, two businesses thatcompete in video and voice services. Jaroch thinksComcast’s growth prospects make it a more attractiveactive bet. The Verizon position, on the other hand, helpedkeep the fund’s combined 10.4% stake in the yield-richtelecom and utilities sectors close to the benchmark’s11.5%.

Reasonable fees, especially versus broker-soldpeers, help the fund's chances. The fund will have atougher time against passive rivals, but its results thusfar suggest it should be competitive.

Address: Putnam Equity Income Fund Minimum Purchase: $0 Add: — IRA: —Boston MA 02109 Min Auto Inv Plan: — Add: —800-225-1581 Sales Fees: No-load

Web Address: www.putnam.com Management Fee: 0.63% mx./0.40% mn.Inception: 07-02-12 Actual Fees: Mgt:0.47% Dist:—Advisor: Putnam Investment Management, LLC Expense Projections: 3Yr:$176 5Yr:$307 10Yr:$689Subadvisor: None Income Distribution: Quarterly

©2017 Morningstar. All Rights Reserved. The data and analyses herein does not constitute investment advice; is provided solely for informationalpurposes; is not an offer to buy/sell a security; and is not warranted to be correct, complete or accurate. Morningstar is not responsible for any tradingdecisions, damages or losses resulting from, or related to, the data and analyses or their use.

ß® Mutual Funds A

28

Fund Name: Delaware Value Instl (Ticker: DDVIX) Manager: Delaware Investments

Asset Class: Large Value Fund Type: Active


Diagnostics Report

Delaware Value Instl passes 8 of 9 of our investable fund criteria. The fund managers generally hold a concentrated portfolio with approximately 32 holdings as of

12/31/2016. Despite the concentrated nature of the portfolio, the fund managers maintain exposure to all eleven S&P sectors. Top sector holdings by weight as of the end

of the fourth quarter included healthcare (21%), energy (14.1%), and financials (12.3%). The fund ranks in the top quartile of its peer group on a 3-year and 5-year basis.

Fund DescriptionDelaware Value Fund seeks long-term capital appreciation. The fund invests in large-capitalization companies, seeking consistent long-term performance. The fundfollows a traditional value-oriented investment philosophy using a research-intensive approach.





Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass


The fund’s 3-year alpha is 1.05%,above the large value categoryaverage of -1.71%.


The fund’s 3-year r-squared is87.39%, below the large valuecategory average of 87.91%.


29

Delaware Value® Fund Institutional Class DDVIX Morningstar Analyst Rating—


19.60 [-0.13 | -0.66 1.69 14 Limited — None 0.73% QQQQ Large Value 1 Large Value

Growth of 10,000 01-30-2007 - 01-30-2017

5K

10K

15K

20K

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Delaware Value® FundInstitutional Class$19,140.65Large Value $16,397.95S&P 500 TR USD $19,909.86

Investment Strategy

The investment seeks long-term capital appreciation. Under normal circumstances, the fund will invest at least 80% of its netassets, plus the amount of any borrowings for investment purposes, in securities of large-capitalization companies (the 80%policy). It invests primarily in securities of large-capitalization companies that the Manager believes have long-term capital ap-preciation potential. The fund's advisor currently defines large-capitalization stocks as those with market capitalizations of $5billion or greater at the time of purchase.



Growth of 10,000 9,959 9,959 11,969 13,446 19,330 19,014Fund -0.41 -0.41 19.69 10.37 14.09 6.64+/- S&P 500 TR USD -2.39 -2.39 -0.45 -0.27 -0.01 -0.43+/- Category -1.35 -1.35 -2.57 2.13 1.85 1.24% Rank in Cat 96 96 70 9 11 19# of Funds in Cat 1,298 1,298 1,242 1,066 913 668* Currency is displayed in USD


Y Halliburton Co 3.58 56.39 USD -0.16 [ 27.96 - 58.78ConocoPhillips 3.55 48.23 USD 1.67 ] 31.05 - 53.17

Y BB&T Corp 3.29 46.27 USD -0.47 [ 29.95 - 47.85Chevron Corp 3.28 111.40 USD -0.38 [ 79.85 - 119.00

Y Bank of New York Mellon Corp 3.23 44.59 USD -0.16 [ 32.20 - 49.54




d Healthcare 24.62 25.22 22.15 12.77

o Energy 15.87 15.87 13.03 10.93


a Technology 11.56 12.59 11.56 12.55

p Industrials 9.98 9.98 9.55 10.79

Fund Cat Avg

0 10 20 30 40


DistributionNAV



Return ofCapital

DividendIncome

DistributionTotal

12-22-2016 19.80 0.0700 0.0900 0.0000 0.0900 0.240009-22-2016 19.20 0.0000 0.0000 0.0000 0.0800 0.080006-22-2016 19.06 0.0000 0.0000 0.0000 0.0900 0.090003-22-2016 17.78 0.0000 0.0000 0.0000 0.0800 0.080012-22-2015 17.57 0.2400 0.0000 0.0000 0.0900 0.3300



Low Avg High

(1088)


Pillars


Rating .

Style Map

DeepVal

CoreVal

Core CoreGrow

HighGrow

Micro

Small

Medium

Large



Asset Allocation

Asset Class % Net



D. Tysen Nutt 07-30-2004Robert A. Vogel 07-30-2004Nikhil G. Lalvani 10-02-2006Kristen E. Bartholdson 12-31-2008



®



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30

Fund Name: JPMorgan Intrepid Mid Cap Select (Ticker: WOOPX) Manager: JPMorgan

Asset Class: Mid-Cap Blend Fund Type: Active


Diagnostics Report

JPMorgan Intrepid Mid Cap Select passes 6 of 9 of our investable fund criteria. The fund scores within an acceptable range for category rank and trading activity. We

continue to monitor the fund’s value added. As of the end of the fourth quarter, the fund’s top sectors were: information technology (16.7%), industrials (14.1%), and

financials (11.3%).

Fund DescriptionThe fund seeks long-term capital growth by investing primarily in equity securities of companies with an intermediate capitalization which are a part of the Russell MidcapIndex. Security selection is based upon a behavioral finance-based investment process that seeks to capitalize on market inefficiencies.



The fund’s expense ratio is 0.90%,below the mid-cap blend categoryaverage of 1.12%.


Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s 3-year sharpe ratio is0.61%, exceeding the mid-capblend category average of 0.52%.

The fund’s 3-year alpha is -2.07%,above the mid-cap blend categoryaverage of -2.75%.

The fund’s 3-year standard deviationis 11.73%, below the mid-cap blendcategory average of 12.43%.

The fund’s 3-year r-squared is89.43%, above the mid-cap blendcategory average of 77.4%.

The fund’s turnover ratio is78%, above the mid-cap blendcategory average of 70.42%.

31

JPMorgan Intrepid Mid Cap Fund Select Class WOOPX Morningstar Analyst Rating—


22.37 [-0.17 | -0.75 0.71 1 Open $1 None 0.90% QQQ Mid-Cap Blend 5 Mid Blend

Growth of 10,000 01-30-2007 - 01-30-2017

5K

10K

15K

20K

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

JPMorgan Intrepid Mid CapFund Select Class$19,810.83Mid-Cap Blend $18,694.91S&P 500 TR USD $19,909.86

Investment Strategy

The investment seeks long-term capital growth by investing primarily in equity securities of companies with intermediate capit-alizations. Under normal circumstances, at least 80% of the fund's assets will be invested in common and preferred stocks,rights, warrants, convertible securities and other equity securities of mid cap companies. "Assets" means net assets, plus theamount of borrowings for investment purposes. Mid cap companies are companies with market capitalizations similar to thosewithin the universe of the Russell Midcap® Index at the time of purchase.



Growth of 10,000 10,215 10,215 12,190 12,781 19,203 19,722Fund 2.15 2.15 21.90 8.52 13.94 7.03+/- S&P 500 TR USD 0.16 0.16 1.75 -2.12 -0.16 -0.04+/- Category 0.53 0.53 -2.03 1.33 1.60 0.35% Rank in Cat 23 23 70 38 18 47# of Funds in Cat 469 469 415 359 322 215* Currency is displayed in USD


Y Equinix Inc 2.09 385.81 USD -0.14 [ 255.45 - 391.07

Y NCR Corp 2.02 42.59 USD 0.34 ] 18.02 - 44.41

Y Huntington Ingalls Industries Inc 1.92 192.76 USD 0.27 ] 122.91 - 197.28

Y Marvell Technology Group Ltd 1.89 14.79 USD -0.77 [ 8.32 - 15.45

Y Xerox Corp 1.80 6.84 USD -1.44 [ 5.62 - 7.50




a Technology 16.39 16.39 13.78 14.61


p Industrials 14.14 15.77 15.10 16.17


d Healthcare 9.15 11.16 8.70 9.18

Fund Cat Avg

0 5 10 15 20


DistributionNAV



Return ofCapital

DividendIncome

DistributionTotal

12-20-2016 22.28 0.0000 0.0000 0.0000 0.0500 0.050012-14-2016 22.11 0.0000 0.0000 0.0000 0.0000 0.000009-28-2016 21.42 0.0000 0.0000 0.0000 0.0500 0.050006-28-2016 19.70 0.0000 0.0000 0.0000 0.0600 0.060012-21-2015 19.41 0.0000 0.0000 0.0000 0.0800 0.0800



Low Avg High

(371)

Return vs. Category Avg(371)

Pillars


Rating .

Style Map

DeepVal

CoreVal

Core CoreGrow

HighGrow

Micro

Small

Medium

Large



Asset Allocation

Asset Class % Net



Dennis S. Ruhl 12-19-2008Phillip D. Hart 11-01-2011



®



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Page 1 of 11

32

Fund Name: Aberdeen Small Cap Inst (Ticker: GSCIX) Manager: Aberdeen

Asset Class: Small Growth Fund Type: Active


Diagnostics Report

Aberdeen Small Cap Inst passes 8 of 9 of our investable fund criteria. The fund falls with in acceptable range for correlation to benchmark. Aberdeen Small Cap Inst has an

enviable track record, ranking in the top 10% of its peer group on a 1-year, 3-year, and 5-year basis with stock selection as the long-term driver of the fund’s outperformance

versus the benchmark. Top sectors include industrials (21.3%), financials (15.2%), and consumer discretionary (14.3%).

Fund DescriptionThe fund seeks long-term capital appreciation by investing in small capitalization companies. The investment team employs a fundamental, bottom-up equity investmentstyle, with an emphasis on first-hand research and disciplined company evaluation.



The fund’s expense ratio is 1.14%,below the small growth categoryaverage of 1.31%.


Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s 3-year sharpe ratio is1.01%, exceeding the small growthcategory average of 0.30%.

The fund’s 3-year alpha is 4.75%,above the small growth categoryaverage of -5.60%.

The fund’s 3-year standard deviationis 12.68%, below the small growthcategory average of 15.96%.

The fund’s 3-year r-squared is58.54%, below the small growthcategory average of 59.50%.

The fund’s turnover ratio is32.2%, below the small growthcategory average of 75.97%.

33

Aberdeen U.S. Small Cap Equity Fund Institutional Class GSCIX Morningstar Analyst Rating—


34.04 [-0.27 | -0.79 0.00 1.8 Open $1 mil None 1.14% QQQQ Small Growth 9 Small Growth

Growth of 10,000 01-30-2007 - 01-30-2017

4K

9K

15K

20K

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Aberdeen U.S. Small CapEquity Fund InstitutionalClass$19,625.48Small Growth $18,394.84S&P 500 TR USD $19,909.86

Investment Strategy

The investment seeks long-term capital appreciation. The fund normally invests at least 80% of the value of its net assets, plusany borrowings for investment purposes, in equity securities issued by U.S. small-cap companies. The advisor considers small-cap companies to be companies that have market capitalizations similar to those of companies included in the Russell 2000®Index at the time of investment. It also may invest in foreign securities and securities of larger companies.



Growth of 10,000 9,815 9,815 12,529 14,522 21,737 19,503Fund -1.85 -1.85 25.29 13.24 16.80 6.91+/- S&P 500 TR USD -3.83 -3.83 5.14 2.60 2.70 -0.16+/- Category -3.28 -3.28 0.42 8.60 5.58 -0.16% Rank in Cat 98 98 49 1 1 58# of Funds in Cat 690 690 660 591 525 386* Currency is displayed in USD


T Beacon Roofing Supply Inc 3.44 43.71 USD -2.91 [ 32.24 - 49.32

T Cal-Maine Foods Inc 2.94 41.65 USD 0.24 ] 35.65 - 55.43

T Core-Mark Holding Co Inc 2.68 35.29 USD -1.45 [ 31.54 - 50.00

T Littelfuse Inc 2.67 156.34 USD -0.66 [ 100.04 - 158.70

T WSFS Financial Corp 2.67 45.00 USD 0.45 ] 26.40 - 47.65




p Industrials 18.84 18.84 17.13 17.38


r Basic Materials 15.03 18.67 14.99 5.20


d Healthcare 11.02 11.79 9.18 16.44

Fund Cat Avg

0 5 10 15 20


DistributionNAV



Return ofCapital

DividendIncome

DistributionTotal

03-18-2011 15.97 0.0000 0.0000 0.0000 0.0500 0.0500


Risk vs. Category Low

Low Avg High

(599)


Pillars


Rating .

Style Map

DeepVal

CoreVal

Core CoreGrow

HighGrow

Micro

Small

Medium

Large



Asset Allocation

Asset Class % Net



Ralph Bassett 10-28-2008Jason Kotik 10-28-2008Douglas Burtnick 12-31-2008Joseph McFadden 12-31-2010



®



®

Page 1 of 11

34

Fund Name: Northern Small Cap Core (Ticker: NSGRX) Manager: Northern Funds

Asset Class: Small Blend Fund Type: Active


Diagnostics Report

Northern Small Cap Core passes 7 of 9 of our investable fund criteria. The fund falls within an acceptable range for category ranking and value added. Top sectors include

financials (19.3%), information technology (17.3%), and industrials (15.4%).

Fund DescriptionThe fund seeks long-term capital appreciation by investing in a highly diversified portfolio of small-cap companies. Fund managers employ a quantitative-managed, corestyle investment strategy to select stocks based on a statistical analysis of historical relationships among small-cap characteristics, stock prices and market capitalizationranges.



The fund’s expense ratio is 0.75%,below the small blend categoryaverage of 1.21%.

The fund has $526 million inassets under management.

Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s 3-year sharpe ratio is0.53%, exceeding the small blendcategory average of 0.45%.

The fund’s 3-year alpha is -2.07%,above the small blend categoryaverage of -3.32%.

The fund’s 3-year standard deviationis 14.88%, below the small blendcategory average of 15.02%.

The fund’s 3-year r-squared is64.59%, above the small blendcategory average of 63.95%.

The fund’s turnover ratio is14.31%, below the small blendcategory average of 65.06%.

35

Northern Small Cap Core Fund NSGRX Morningstar Analyst Rating—


23.47 [-0.31 | -1.30 0.58 517 Open $2,500 None 0.75% QQQQ Small Blend 6 Small Blend

Growth of 10,000 01-30-2007 - 01-30-2017

5K

10K

16K

21K

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Northern Small Cap CoreFund $21,066.89Small Blend $18,593.42S&P 500 TR USD $19,909.86

Investment Strategy

The investment seeks to provide long-term capital appreciation; any income received is incidental to this objective. The fundwill invest at least 80% of its net assets in equity securities of small capitalization companies. Small capitalization companiesgenerally are considered to be those whose market capitalization is, at the time the fund makes an investment, within therange of the market capitalization of companies in the Russell 2000® Index. Many of the companies in which the fund investsretain their earnings to finance current and future growth. These companies generally pay little or no dividends.



Growth of 10,000 9,945 9,945 13,025 12,536 18,687 21,020Fund -0.55 -0.55 30.25 7.83 13.32 7.71+/- S&P 500 TR USD -2.54 -2.54 10.10 -2.82 -0.78 0.64+/- Category -0.38 -0.38 0.33 1.04 1.36 1.10% Rank in Cat 65 65 46 39 34 25# of Funds in Cat 798 798 735 608 515 354* Currency is displayed in USD


Jack In The Box Inc 0.33 106.81 USD -0.29 [ 61.78 - 113.30Microsemi Corp 0.29 52.91 USD -2.70 [ 29.00 - 57.97Investors Bancorp Inc 0.27 14.33 USD 0.14 ] 10.67 - 14.93CNO Financial Group Inc 0.27 18.80 USD -2.39 [ 14.30 - 20.55Cognex Corp 0.27 66.75 USD -0.40 [ 29.45 - 67.96





a Technology 16.27 17.56 16.27 15.07

p Industrials 15.82 15.82 13.87 17.73


d Healthcare 11.42 14.97 11.42 9.25

Fund Cat Avg

0 5 10 15 20


DistributionNAV



Return ofCapital

DividendIncome

DistributionTotal

12-15-2016 23.73 0.0100 0.0100 0.0000 0.1400 0.160012-17-2015 19.64 0.5400 0.0000 0.0000 0.1200 0.660012-18-2014 21.03 0.8400 0.1000 0.0000 0.1100 1.060012-19-2013 20.31 1.5400 0.1100 0.0000 0.0700 1.710012-19-2012 16.33 0.0300 0.0000 0.0000 0.2100 0.2400



Low Avg High

(626)


Pillars


Rating .

Style Map

DeepVal

CoreVal

Core CoreGrow

HighGrow

Micro

Small

Medium

Large



Asset Allocation

Asset Class % Net



Robert H. Bergson 02-28-2010



®



®

Page 1 of 11

36

Fund Name: Delaware Small Cap Value Instl (Ticker: DEVIX) Manager: Delaware Investments

Asset Class: Small Value Fund Type: Active


Diagnostics Report

Delaware Small Cap Value Instl passes 8 of 9 of our investable fund criteria. The fund falls within an acceptable range for value added. Delaware Small Cap Value Instl

has a strong track record, ranking in the top quartile of its peer group on a 1-year, 3-year, and 5-year basis. Top sectors include financial services (28.9%), information

technology (13%), and basic industry (9.4%).

Fund DescriptionThe fund seeks capital appreciation by investing in small-cap value stocks. The investment team primarily invests in small companies whose stock prices appear lowrelative to their underlying value or potential.



The fund’s expense ratio is 0.97%,below the small value categoryaverage of 1.31%.


Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s 3-year sharpe ratio is0.65%, exceeding the small valuecategory average of 0.50%.

The fund’s 3-year alpha is -0.52%,above the small value categoryaverage of -2.33%.

The fund’s 3-year standard deviationis 14.97%, below the small valuecategory average of 15.14%.

The fund’s 3-year r-squared is67.86%, above the small valuecategory average of 60.49%.

The fund’s turnover ratio is20.00%, below the small valuecategory average of 78.07%.

37

Delaware Small Cap Value Fund Institutional Class DEVIX Morningstar Analyst Rating—


63.52 [-0.69 | -1.08 0.69 4 Open — None 0.97% QQQQ Small Value 6 Small Blend

Growth of 10,000 01-30-2007 - 01-30-2017

5K

11K

16K

22K

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Delaware Small Cap ValueFund Institutional Class$21,732.00Small Value $18,804.96S&P 500 TR USD $19,909.86

Investment Strategy

The investment seeks capital appreciation. Under normal circumstances, at least 80% of the fund's net assets, plus the amountof any borrowings for investment purposes, will be in investments of small-capitalization companies. It invests primarily in in-vestments of small companies whose stock prices, in the portfolio managers' opinion, appear low relative to their underlyingvalue or future potential.



Growth of 10,000 10,087 10,087 14,228 13,458 18,461 21,570Fund 0.87 0.87 42.28 10.41 13.04 7.99+/- S&P 500 TR USD -1.11 -1.11 22.13 -0.23 -1.05 0.92+/- Category 1.35 1.35 7.93 2.84 0.77 1.47% Rank in Cat 10 10 7 12 42 17# of Funds in Cat 433 433 406 344 305 195* Currency is displayed in USD


East West Bancorp Inc 3.10 51.44 USD -0.77 [ 27.25 - 54.04Berry Plastics Group Inc 2.23 50.38 USD -0.63 [ 27.79 - 52.97

Y MasTec Inc 2.19 37.40 USD -2.48 [ 12.44 - 41.90Webster Financial Corp 2.17 52.47 USD -0.63 [ 30.64 - 55.80Selective Insurance Group Inc 1.76 41.60 USD 0.00 [ 30.47 - 44.00





a Technology 13.55 14.07 13.18 12.15

p Industrials 13.17 15.49 13.09 18.04


u Real Estate 7.80 8.15 7.38 7.36

Fund Cat Avg

0 10 20 30 40


DistributionNAV



Return ofCapital

DividendIncome

DistributionTotal

12-22-2016 63.37 0.0000 0.0000 0.0000 0.4300 0.430012-22-2015 48.05 2.7200 0.1700 0.0000 0.4500 3.350012-22-2014 54.75 2.2200 0.4000 0.0000 0.3100 2.930012-20-2013 54.00 0.8500 0.2500 0.0000 0.1700 1.270012-21-2012 42.27 0.2500 0.0000 0.0000 0.1900 0.4400



Low Avg High

(347)


Pillars


Rating .

Style Map

DeepVal

CoreVal

Core CoreGrow

HighGrow

Micro

Small

Medium

Large



Asset Allocation

Asset Class % Net



Christopher S. Beck 05-01-1997Steven G. Catricks 07-01-2012Kent P. Madden 07-01-2012Kelley A. McKee 07-01-2012



®



®

Page 1 of 11

38

Fund Name: American Funds EuroPacific Growth R6 (Ticker: RERGX) Manager: American Funds

Asset Class: Foreign Large Growth Fund Type: Active


Diagnostics Report

American Funds EuroPacific Growth R6 passes 9 of 9 of our investable fund criteria. Geographically, the fund is invested in Europe (45.87%), Asia & Pacific Basin

(45.68%), and the Americas (8.44%).

Fund DescriptionThe fund provides long-term growth of capital by investing in companies based outside the United States. The investment team invests with a long-term focus based onthorough research and attention to risk.



The fund’s expense ratio is 0.50%,below the foreign large growthcategory average of 1.25%.


Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s 3-year sharpe ratio is -0.01%,exceeding the foreign large growthcategory average of -0.11%.

The fund’s 3-year alpha is 0.83%,above the foreign large growthcategory average of -0.31%.

The fund’s 3-year standard deviationis 11.20%, below the foreign largegrowth category average of 12.01%.

The fund’s 3-year r-squared is89.22%, above the foreign largegrowth category average of 82.62%.

The fund’s turnover ratio is 30.0%,below the foreign large growthcategory average of 57.77%.

39


American Funds Europacific Growth R6 TickerRERGX

Yield1.6%


Mstar CategoryForeign Large Growth

Benchmark 1: MSCI ACWI Ex USA Growth NR USDBenchmark 2: MSCI ACWI Ex USA NR USD


ŒMorningstar Pillars

Process ∞ PositivePerformance ∞ PositivePeople ∞ PositiveParent ∞ PositivePrice ∞ Positive



Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.0

14.0

16.0

18.0


Above AvgBelow AvgQQQQAbove Avg


Growth of $10,000


( * * * * ( & Performance Quartile(within Category)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12-16 History. . . 38.34 41.37 35.13 41.18 49.03 47.09 45.32 45.04 NAV. . . . 9.76 -13.31 19.64 20.58 -2.29 -0.48 1.01 Total Return %. . . . -4.69 0.90 2.97 5.09 0.36 0.77 0.89 +/- Bmark 1. . . . -1.39 0.40 2.81 5.29 1.57 5.18 -3.48 +/- Bmark 2. . . . 1.84 1.78 2.40 1.49 1.68 2.05 1.63 Income Return %. . . . 7.92 -15.08 17.24 19.08 -3.97 -2.53 -0.61 Capital Return %. . . . 54 40 26 40 27 66 20 Total Rtn % Rank Cat. . . 0.71 0.71 0.74 0.84 0.61 0.82 0.97 0.74 Income $. . . . 0.00 0.00 0.00 0.00 0.00 0.59 0.00 Capital Gains $. . . . 0.52 0.50 0.50 0.50 0.49 0.49 0.50 Expense Ratio %. . . . 1.26 1.61 1.88 1.76 1.85 1.20 1.65 Income Ratio %. . . . 26 31 24 28 28 28 30 Turnover Rate %. . . 5,450 12,168 14,518 21,221 30,294 35,207 40,460 45,320 Net Assets $mil


2012 12.38 -6.13 7.34 5.65 19.642013 2.94 -0.73 9.55 7.71 20.582014 0.71 2.96 -4.21 -1.63 -2.292015 5.97 1.12 -9.81 2.97 -0.482016 -2.32 -0.32 8.23 -4.15 1.01


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo -4.15 1.57 -2.89 25 9,5856 Mo 3.74 3.74 -1.83 10 10,3741 Yr 1.01 0.89 -3.48 20 10,1013 Yr Avg -0.60 0.67 1.18 20 9,8225 Yr Avg 7.22 1.88 2.22 25 14,16910 Yr Avg — — — — —15 Yr Avg — — — — —

Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat3 Yr (estimated) -1.33 21 0.74 725 Yr (estimated) 6.47 25 0.70 7610 Yr (estimated) — — — —



Load-AdjReturn %




1 Yr 1.013 Yr -0.60 +Avg -Avg QQQQ5 Yr 7.22 +Avg -Avg QQQQ10 Yr — — — —Incept 8.26


Alpha 0.8 0.5Beta 0.83 0.88R-Squared 89 93

Standard Deviation 11.20Mean -0.60Sharpe Ratio -0.01

Portfolio Analysis 09-30-16Total Stocks: 243Share change since 06-30-16 Sector Country % AssetsYNovo Nordisk A/S B Hlth Care Denmark 3.08YNintendo Co Ltd Technology Japan 2.34

Tencent Holdings Ltd Technology China 2.27YAlibaba Group Holding Ltd Cnsmr Cyc China 2.26TAIA Group Ltd Finan Svcs Hong Kong 2.07YNovartis AG Hlth Care Switzerland 2.05

HDFC Bank Ltd Finan Svcs India 1.85YSoftBank Group Corp Comm Svcs Japan 1.76

Taiwan Semiconductor Manu Technology Taiwan 1.75British American Tobacco Cnsmr Def United Kingdom 1.73

TPrudential PLC Finan Svcs United Kingdom 1.66TSony Corp Technology Japan 1.64TAssociated British Foods Cnsmr Def United Kingdom 1.31TAirbus Group SE Industrl Netherlands 1.24TBarclays PLC Finan Svcs United Kingdom 1.23YASML Holding NV Technology Netherlands 1.20TMurata Manufacturing Co L Technology Japan 1.07

Naspers Ltd Class N Technology South Africa 1.07TInfineon Technologies AG Technology Germany 1.00TSysmex Corp Hlth Care Japan 0.98


LargeM

idSm

all





Long-Term Erngs 12.46 1.12Book Value -14.74 -2.80Sales -2.05 -1.67Cash Flow 4.69 0.55Historical Erngs 3.83 0.52

Composition - Net

Cash 1.5 Bonds 1.8Stocks 93.0 Other 3.7

Foreign (% of Stock) 98.4

SectorWeightings

% ofStocks

RelBmark 1




Regional Exposure % Stock

UK/W. Europe 42 N. America 6Japan 17 Latn America 2Asia X Japan 31 Other 3

Country Exposure % Stock

Japan 17UK 13China 9

India 8Hong Kong 6

Morningstar's Take by Alec Lucas 10-03-16American Funds Europacific Growth has a MorningstarAnalyst Rating of Gold because it is adept at takingadvantage of the market’s opportunities. In the early2000s, the fund’s fundamentals-driven approach kept itin the foreign large-blend Morningstar Category, where ithad a strong run as international value stocks consistentlybeat their growth counterparts. In recent years, wadingheavily into pharma and tech has helped the fund staycompetitive as growth stocks have outperformed. Duringthe past three years through August 2016, the fund’s4.9% annualized gain beat the MSCI All-Country WorldEx-U.S. Growth Index by a percentage point and placedin the top quartile in foreign large-growth, the fund’scategory since late 2014.

The portfolio’s malleability owes to American’smultimanager system. Managers each run separatesleeves of the portfolio in line with their own styles. Theircombination provides a smoother ride and allows the fundto take on different tilts and thus perform well in variedconditions.

Management changes have also contributed to theportfolio’s growth bent. In 2013, value-leaning manager

Stephen Bepler retired after decades of service andLawrence Kymisis, a more growth-oriented investor whotraffics in mid-caps, joined the current nine-person team.Still, four of its members were already in place here bymid-2002, including longest-tenured manager MarkDenning, who likes stocks with capital appreciationpotential that trade at low price multiples.

The current team is inclined toward growth but hasn’tlost its contrarian edge. As emerging-markets stocks fellinto a bear market between April 2015 and early 2016,the managers bought Chinese Internet stocks like top-fiveholding Alibaba BABA and held fast to Indian banks likeHDFC Bank HDB, also a top-five holding. By mid-2016, thefund had a top-decile 24% emerging-markets stake(including South Korea and Taiwan). Management’swillingness to court volatility can hurt in the short term,as it did with the fund's bottom-third 0.8% loss in 2015.Over the long haul, though, management has shown thefund can come out ahead.

Address: Europacific Growth Fund Minimum Purchase: $250 Add: $50 IRA: —Los Angeles, CA 90071-1406 Min Auto Inv Plan: $50 Add: $50800-421-4225 Sales Fees: No-load

Web Address: www.americanfunds.com Management Fee: 0.69% mx./0.39% mn., 0.05%AInception: 05-01-09 Actual Fees: Mgt:0.42% Dist:—Advisor: Capital Research and Management Company Expense Projections: 3Yr:$160 5Yr:$280 10Yr:$628Subadvisor: None Income Distribution: Annually


ß® Mutual Funds A

40

Fund Name: Lazard International Equity Instl (Ticker: LZIEX) Manager: Lazard

Asset Class: Foreign Large Blend Fund Type: Active


Diagnostics Report

Lazard International Equity passes 5 of 9 of our investable fund criteria. The fund scores within an acceptable range for category rank and risk-adjusted performance. We

continue to monitor the fund’s correlation to its benchmark and value added. Geographic holdings by region include Greater Europe (59.91%), Greater Asia (23.84%), and

Americas (16.25%).

Fund DescriptionLazard International Equity seeks to generate strong relative returns over a long-term time horizon by investing in companies with strong financial productivity atattractive valuations. Securities are selected from those that comprise the MSCI EAFE Index. The investment team employs a bottom-up approach to stock selection,utilizing both fundamental and quantitative research methodologies.



The fund’s expense ratio is 0.86%,below the foreign large blendcategory average of 1.11%.


Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s 3-year sharpe ratio is -0.16%,below the foreign large blend categoryaverage of -0.13%.

The fund’s 3-year alpha is -0.90%,below the foreign large blendcategory average of -0.54%.

The fund’s 3-year standard deviationis 11.42%, below the foreign largeblend category average of 12.05%.

The fund’s 3-year r-squared is84.51%, below the foreign largeblend category average of 89.09%.

The fund’s turnover ratio is 30.0%,below the foreign large blendcategory average of 59.55%.

41


Lazard International Equity Instl TickerLZIEX

Yield1.1%


Mstar CategoryForeign Large Blend

Benchmark 1: MSCI ACWI Ex USA NR USDBenchmark 2: MSCI ACWI Ex USA NR USD



Process ∞ PositivePerformance ∞ PositivePeople ∞ PositiveParent ¶ NeutralPrice ∞ Positive



Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.0

14.0

16.0

8.0




Growth of $10,000


( ( & ( * & & * * & ) Performance Quartile(within Category)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12-16 History16.31 17.55 10.50 13.14 13.81 12.49 14.78 17.85 16.93 17.08 16.20 NAV22.92 10.96 -37.75 25.19 8.04 -7.17 22.70 20.84 -4.29 1.62 -4.18 Total Return %-3.73 -5.69 7.78 -16.26 -3.12 6.54 5.87 5.55 -0.42 7.28 -8.67 +/- Bmark 1-3.73 -5.69 7.78 -16.26 -3.12 6.54 5.87 5.55 -0.42 7.28 -8.67 +/- Bmark 26.15 3.33 2.32 0.04 2.72 2.47 4.18 0.06 0.90 0.72 1.00 Income Return %

16.77 7.64 -40.07 25.15 5.31 -9.63 18.53 20.78 -5.19 0.90 -5.18 Capital Return %72 61 14 71 42 3 8 38 35 16 92 Total Rtn % Rank Cat

0.85 0.54 0.41 0.00 0.36 0.34 0.52 0.01 0.16 0.12 0.17 Income $0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Capital Gains $0.84 0.89 0.93 0.99 0.98 1.03 1.02 0.95 0.90 0.87 0.84 Expense Ratio %2.14 2.08 2.47 2.33 1.63 1.99 1.85 1.42 1.46 1.50 2.96 Income Ratio %

68 50 44 66 53 39 48 43 36 30 . Turnover Rate %702 335 120 139 127 87 109 185 378 734 1,531 Net Assets $mil


2012 12.89 -5.11 7.96 6.09 22.702013 4.19 -1.30 9.27 7.53 20.842014 0.45 4.24 -5.95 -2.81 -4.292015 5.67 2.18 -8.42 2.77 1.622016 -0.88 -1.48 2.93 -4.67 -4.18


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo -4.67 -3.42 -3.42 87 9,5336 Mo -1.88 -7.45 -7.45 97 9,8121 Yr -4.18 -8.68 -8.67 92 9,5823 Yr Avg -2.32 -0.54 -0.55 57 9,3205 Yr Avg 6.68 1.68 1.68 26 13,81810 Yr Avg 1.83 0.87 0.87 18 11,98515 Yr Avg 5.41 -0.46 -0.46 36 22,046

Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat3 Yr (estimated) -2.59 35 0.28 85 Yr (estimated) 6.23 13 0.42 1710 Yr (estimated) 1.23 13 0.59 19

Potential Capital Gain Exposure: -5% of assets


Load-AdjReturn %




1 Yr -4.183 Yr -2.32 Avg -Avg QQQ5 Yr 6.68 +Avg Avg QQQQ10 Yr 1.83 +Avg Low QQQQIncept 5.61




Portfolio Analysis 09-30-16Total Stocks: 58Share change since 06-30-16 Sector Country % AssetsTNovartis AG Hlth Care Switzerland 3.93TAnheuser-Busch Inbev SA Cnsmr Def Belgium 3.27TBritish American Tobacco Cnsmr Def United Kingdom 3.02TShire PLC Hlth Care United States 2.88TPrudential PLC Finan Svcs United Kingdom 2.75TDaiwa House Industry Co L Real Est Japan 2.73TKDDI Corp Comm Svcs Japan 2.59TRoyal Dutch Shell PLC Cla Energy United Kingdom 2.40TTaiwan Semiconductor Manu Technology Taiwan 2.28TTeva Pharmaceutical Indus Hlth Care Israel 2.21TDon Quijote Holdings Co L Cnsmr Def Japan 2.16RSAP SE Technology Germany 2.14TCapgemini SA Technology France 2.13TBHP Billiton PLC Basic Mat United Kingdom 2.06TSampo Oyj A Finan Svcs Finland 2.06TWolters Kluwer NV Cnsmr Cyc Netherlands 2.02TAssa Abloy AB Industrl Sweden 2.01TVinci SA Industrl France 1.99TWolseley PLC Industrl United States 1.97TAon PLC Finan Svcs United States 1.94


LargeM

idSm

all





Long-Term Erngs 9.58 1.07Book Value 7.23 2.12Sales -0.26 0.15Cash Flow 5.95 1.72Historical Erngs -0.19 0.05

Composition - Net



SectorWeightings

% ofStocks

RelBmark 1







Japan 20UK 20United States 9

France 9Belgium 5

Morningstar's Take by Gregg Wolper 07-06-16Lazard International Equity offers experiencedmanagement and a sensible process that hasdemonstrated its worth. It earns a Morningstar AnalystRating of Bronze.

The fund lands in the top quartile of the foreign large-blend Morningstar Category over the trailing five- and 10-year periods through June 30, 2016. One reason: It tendsto lose less than its peers and relevant indexes whenforeign markets and currencies fall, yet it doesn'tinevitably trail in rallies as some defensively minded fundsdo. For example, it lost 6.8 percentage points less thanthe category average in rocky 2011, yet when marketssoared the following two years, it outperformed then aswell (by smaller margins).

London-based lead manager Michael Fry, who's beenat the helm since he joined Lazard in late 2005, workswith four Lazard veterans on the management team, plusa seasoned analyst group that numbers around 20. Theylook for companies that demonstrate "financialproductivity," or what others might call profitability, asmeasured by return on equity or other appropriatemetrics.

The fund's strategy has a value tilt. But the managersdon't want troubled firms no matter how cheaply they'reselling or how great the potential gains from a turnaround.As a result, the portfolio typically ends up in the blendportion of the Morningstar Style Box, not in the value area.Its overall market capitalization is lower than the categoryaverage. However, this fund is not as growth-leaning, noras all-cap oriented, as similar sibling Lazard InternationalStrategic Equity LISIX.

As with its sibling, though, this portfolio's makeupcan shift markedly depending on market conditions. Forexample, its percentage of mid-caps, which now sits ataround 14% of assets (as classified by Morningstar), hasdeclined from roughly 24% of assets three years ago.Michael Bennett, one of the managers, says the shiftowes to the fact that prices of so many mid-cap stocksrose beyond a reasonable level, with bargains easier tofind among bigger stocks. Such flexibility can be anadvantage. It might deter investors looking for a moretargeted approach, but others will find this fund worthchecking out.

Address: Lazard Funds Inc Minimum Purchase: $100000 Add: $50 IRA: $100000New York, NY 10112 Min Auto Inv Plan: — Add: —800-986-3455 Sales Fees: No-load

Web Address: www.lazardnet.com Management Fee: 0.75%Inception: 10-29-91 Actual Fees: Mgt:0.75% Dist:—Advisor: Lazard Asset Management LLC Expense Projections: 3Yr:$276 5Yr:$480 10Yr:$1071Subadvisor: None Income Distribution: Semi-Annually


ß® Mutual Funds A

42

Fund Name: Morgan Stanley Inst Emerging Mkts I (Ticker: MGEMX) Manager: Morgan Stanley

Asset Class: Emerging Markets Fund Type: Active


Diagnostics Report

Morgan Stanley Inst Emerging Mkts I passes 7 of 9 of our investable fund criteria. The fund falls within an acceptable range for value added. We continue to monitor the

fund’s performance relative to its peers. The fund’s top country holdings are concentrated in : China (17.56%), South Korea (11.17%), and Brazil (8.86%).

Fund DescriptionSeeks long-term capital appreciation by investing in emerging market countries where economies are developing strongly. The fund managers seek to holding securitieswith exposure to countries where growth could beat expectations over three to five years. Both macro-thematic research and fundamental bottom-up analysis is used togenerate a growth-oriented portfolio.



The fund’s expense ratio is 1.24%,below the emerging marketscategory average of 1.48%.

The fund has $1 billion inassets under management.

Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s 3-year sharpe ratio is -0.15%,equal to the emerging markets categoryaverage of -0.15%.

The fund’s 3-year alpha is -1.02%,above the emerging marketscategory average of -1.13%.

The fund’s 3-year standard deviationis 14.28%, below the emergingmarkets category average of 15.06%.

The fund’s 3-year r-squared is 75.06%,above the emerging markets categoryaverage of 70.84%.

The fund’s turnover ratio is 40.0%,below the emerging marketscategory average of 70.08%.

43

Morgan Stanley Institutional Fund, Inc. Emerging Markets PortfolioClass I MGEMX

Morningstar Analyst Rating

—


22.00 [-0.13 | -0.59 0.82 1 Open $5 None 1.24% QQQ Diversified EmergingMkts

7 Large Growth

Growth of 10,000 01-30-2007 - 01-30-2017

5K

9K

12K

16K

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Morgan Stanley InstitutionalFund, Inc. Emerging MarketsPortfolio Class I $11,792.07Diversified Emerging Mkts$11,993.03MSCI ACWI Ex USA NR USD$11,395.10



Growth of 10,000 10,562 10,562 11,985 10,242 10,722 11,715Fund 5.62 5.62 19.85 0.80 1.40 1.60+/- MSCI ACWI Ex USA NRUSD

2.07 2.07 3.75 0.00 -3.08 0.33

+/- Category -0.04 -0.04 -1.49 0.08 0.41 -0.34% Rank in Cat 53 53 59 57 37 58# of Funds in Cat 879 879 808 599 424 173* Currency is displayed in USD


T Tencent Holdings Ltd 4.74 204.40 USD -0.29 [ 132.10 - 220.80

T Taiwan Semiconductor ManufacturingCo Ltd

2.82 185.50 USD 0.27 ] 137.00 - 193.00

T Samsung Electronics Co Ltd 2.53 — USD -1.10 [ 1,118,000.00 -2,000,000.00

T China Mobile Ltd 2.25 87.85 USD -0.40 [ 80.30 - 99.30

T Naspers Ltd Class N 2.00 — USD -0.88 [ 168,594.00 -255,359.00




a Technology 22.99 23.12 19.64 22.19



s Consumer Defensive 11.79 11.79 9.57 11.51

p Industrials 8.31 8.31 5.16 5.48

Fund Cat Avg

0 10 20 30 40


DistributionNAV



Return ofCapital

DividendIncome

DistributionTotal

12-16-2016 20.51 0.0000 0.0000 0.0000 0.1700 0.170007-05-2016 20.78 0.0000 0.0000 0.0000 0.0000 0.000012-16-2015 19.77 0.0000 0.0000 0.0000 0.1300 0.130007-02-2015 23.27 0.0000 0.0000 0.0000 0.0400 0.040012-16-2014 21.26 1.0300 0.0000 0.0000 0.1700 1.2000



Low Avg High

(606)


Pillars


Rating .

Style Map

DeepVal

CoreVal

Core CoreGrow

HighGrow

Micro

Small

Medium

Large



Asset Allocation

Asset Class % Net



Paul C. Psaila 02-28-1994Eric Carlson 09-30-1997Ruchir Sharma 04-30-2002Munib Madni 05-17-2012Samuel Rhee 05-17-2012Gaite Ali 04-30-2013



®



®

Page 1 of 11

44

Fund Name: PIMCO Long Duration Total Return Instl (Ticker: PLRIX) Manager: PIMCO

Asset Class: Long-Term Bond Fund Type: Active


Diagnostics Report

PIMCO Long Duration Total Return Instl passes 3 of 9 investable fund criteria. We continue to monitor the fund’s volatility and value added. The fund falls within an

acceptable range for category rank, risk/return, turnover, and expense. PIMCO Long Duration Total Return Instl ended 2016 on a high note as the fund returned 7.18% after

fees, outperforming the benchmark by 0.51%. Exposure to high yield corporate financials and industrials as well as security selection within agency debentures were among

the primary contributors to outperformance. Heading into 217, the fund maintains a more moderated overall duration profile as political and policy uncertainty has risen with

global influences likely to continue to weigh on U.S. interest rates in the near-term.

Fund DescriptionPIMCO Long Duration Total Return Instl provides broad market exposure to high-quality, longer duration fixed income securities. The fund utilizes a variety of strategies toenhance return potential and manage overall portfolio risk. PIMCO seeks to invest in a diversified portfolio of longer duration bonds, with an average duration thatnormally varies within two years (plus or minus) of the Barclays Capital Long-Term Government/Credit Index.



The fund’s expense ratio is0.50%, above the long-term bondcategory average of 0.49%.


Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s 3-year sharpe ratio is0.82%, below the long-termbond category average of 0.93%.

The fund’s 3-year alpha is -0.87%,below the long-term bondcategory average of -0.02%.

The fund’s 3-year standard deviationis 8.80%, above the long-term bondcategory average of 7.67%.

The fund’s 3-year r-squared is92.23%, above the long-termbond category average of 86.32%.

The fund’s turnover ratio is59%, above the long-term bondcategory average of 46.33%.

45


PIMCO Long Duration Total Return Instl TickerPLRIX

Yield4.4%

SEC Yield4.32%


Mstar CategoryLong-Term Bond

Benchmark 1: BBgBarc US Govt/Credit Long TR USDBenchmark 2: BBgBarc US Agg Bond TR USD



Process ∞ PositivePerformance ∞ PositivePeople ∞ PositiveParent ¶ NeutralPrice ¶ Neutral



Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.5

15.0

17.5

20.022.5


Above AvgAbove AvgQQQQAbove Avg

8 8 Investment StyleFixed Income

Growth of $10,000


& & ( * & ( ) & ( * Performance Quartile(within Category)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12-16 History10.09 10.32 10.92 10.62 10.85 11.79 12.07 10.49 12.00 10.69 10.42 NAV. 7.83 12.38 5.62 11.64 18.57 10.28 -8.56 19.02 -3.44 7.18 Total Return %. 1.23 3.94 3.70 1.48 -3.92 1.49 0.26 -0.28 -0.14 0.51 +/- Bmark 1. 0.87 7.14 -0.31 5.10 10.73 6.06 -6.54 13.06 -3.99 4.54 +/- Bmark 2. 5.15 4.82 5.21 5.97 4.77 3.91 3.67 4.43 5.19 4.67 Income Return %. 2.68 7.57 0.41 5.67 13.80 6.37 -12.23 14.59 -8.64 2.51 Capital Return %. 19 5 71 35 20 71 88 12 64 27 Total Rtn % Rank Cat

0.17 0.51 0.49 0.55 0.62 0.51 0.45 0.43 0.46 0.60 0.49 Income $0.00 0.02 0.13 0.34 0.37 0.51 0.46 0.13 0.00 0.31 0.55 Capital Gains $. 0.50 0.50 0.51 0.51 0.51 0.50 0.53 0.51 0.52 0.50 Expense Ratio %. 4.99 4.85 5.02 5.02 4.71 4.33 3.86 4.12 4.09 4.18 Income Ratio %. 330 314 398 364 240 219 81 70 76 59 Turnover Rate %

3 446 1,677 3,708 4,603 5,757 6,086 4,160 4,751 3,312 . Net Assets $mil


2012 -1.18 7.59 3.27 0.44 10.282013 -1.11 -6.74 -0.65 -0.21 -8.562014 6.58 5.02 1.22 5.06 19.022015 3.44 -7.07 1.64 -1.17 -3.442016 6.71 6.82 2.18 -7.98 7.18


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo -7.98 -0.14 -5.00 62 9,2026 Mo -5.97 0.73 -3.44 50 9,4031 Yr 7.18 0.51 4.54 27 10,7183 Yr Avg 7.20 0.04 4.17 38 12,3185 Yr Avg 4.43 0.36 2.20 53 12,42010 Yr Avg 7.72 0.87 3.38 1 21,04315 Yr Avg — — — — —

Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat3 Yr (estimated) 4.36 56 2.65 695 Yr (estimated) 1.93 80 2.40 7310 Yr (estimated) 5.15 17 2.39 67



Load-AdjReturn %




1 Yr 7.183 Yr 7.20 +Avg +Avg QQQ5 Yr 4.43 Avg +Avg QQQ10 Yr 7.72 High Avg QQQQQIncept 7.73


Alpha -0.9 0.0Beta 2.79 1.00R-Squared 92 98


Portfolio Analysis 09-30-16

Total Fixed Income: 637Date of

Maturity Amount 000Value$000

%Assets

Irs Usd 1.75000 12/21/1 12-21-26 286,880 -294,029 10.54Cdx Ig27 5y Ice 12-20-21 228,600 -231,438 8.29Fin Fut Us 2yr Cbt 12/3 12-31-16 149,200 -162,978 5.84Fin Fut Us Ultra 30yr C 12-21-16 74,900 137,722 4.94Resolution Fdg Fed Bk P 01-15-30 173,600 125,587 4.50Resolution Fdg Fed Bk P 04-15-30 156,902 112,714 4.04US Treasury Bond 2.875% 08-15-45 100,500 111,963 4.01US Treasury Note 07-15-23 97,980 101,618 3.64US Treasury Bond 2.75% 11-15-42 85,250 92,838 3.33US Treasury Bond 3% 11-15-44 76,600 87,360 3.13US Treasury Bond 3.75% 11-15-43 58,300 75,898 2.72US Treasury Note 1.75% 01-31-23 63,200 64,703 2.32US Treasury Bond 2.75% 08-15-42 57,850 63,062 2.26Irs Usd 1.55500 06/30/1 06-30-26 59,800 -60,231 2.16Irs Usd 1.75000 12/21/1 12-21-26 58,800 -60,104 2.15Irs Usd 1.51500 06/30/1 06-30-26 56,500 -56,697 2.03US Treasury Bond 2.5% 02-15-45 54,100 55,922 2.00US Treasury Note 1.375% 01-31-21 52,400 52,981 1.90US Treasury Bond 3.625% 08-15-43 41,400 52,722 1.89US Treasury Bond 3.125% 02-15-43 44,886 52,314 1.87


QualityHigh

Med

Low

DurationLtd Mod Ext

1 figure provided byfund

Avg Eff Duration1 14.4 YrsAvg Eff Maturity 23.1 YrsAvg Credit Quality —Avg Wtd Coupon 4.45%Avg Wtd Price 108.74% of par

Coupon Range % of Bonds

0% PIK 11.10% to 4% 38.64% to 6% 30.96% to 8% 16.48% to 10% 2.4More than 10% 0.5

Credit Analysis % bonds

AAA — BB —AA — B —A — Below B —BBB — Not Rated —

Sector Breakdown % Assets

Government 25Government Related 11Corporate 34Agency MBS 2Non-Agency Residential MBS 2Commercial MBS 6Covered Bond 0Asset Backed 0Municipal 1Cash & Equivalents 19Other 0

Composition - Net

Cash -6.1 Bonds 104.0Stocks 0.2 Other 2.0

Special Securities

Restricted/Illiquid Secs 21Emerging-Markets Secs 4Options/Futures/Warrants 0

Morningstar's Take by Eric Jacobson 07-27-16There have been several changes at PIMCO and at thisfund in the past few years. Though it has considerablestrengths, including massive PIMCO resourcessupporting its strategy, there's enough uncertainty tokeep the fund’s Morningstar Analyst Rating at Bronze.

After co-CIO Mohamed El-Erian left in January 2014,PIMCO added to its macro-specialist-heavy investmentcommittee, installing others with notable bottom-upsuccess. Then, following co-founder Bill Gross’September 2014 exit, the firm hired even more macrospecialists. Manager Steve Rodosky then took a leave ofabsence from this fund at the end of February 2016.

The leave wasn’t expected to last, but PIMCOprudently added Mike Cudzil and Mohit Mittal asmanagers. Mittal was already a co-leader of the firm’sliability-driven investment team, specializing in long-duration portfolios. Cudzil is a mortgage specialist butnow co-heads this group with Mittal and spends 70% ofhis time on LDI strategies.

Rodosky’s leave lasted until July 2016. But while heremains a member of the LDI team and comanager here,he took on a different mix of roles after his return, including

leadership responsibilities across teams and the firm. Assuch, Cudzil is now the day-to-day decision-maker onseveral of Rodosky’s portfolios, including this one.

The team’s LDI expertise is a good fit for this fund,which is built for institutional investors looking to matchlong-term liabilities. It uses a typical PIMCO mix of macrocalls and bottom-up analysis but doesn’t usually shiftaround as much as the firm’s other charges. It does makemodest duration tweaks (14.3 years as of June 2016) butis designed to carry high-interest-rate risk across cycles,which also keeps it heavily steeped in U.S. governmentand high-grade corporate fare.

The fund's volatility has been higher than average forthe long-term bond Morningstar Category, but it has alsobeaten its Barclays Long-Term Government/Credit Indexbenchmark since the fund’s inception. Despite itsmanagement shifts, the fund remains a good choice forlong-duration exposure.

Address: PIMCO Investments LLC distributor Minimum Purchase: $1000000 Add: — IRA: —New York NY 10019 Min Auto Inv Plan: — Add: —888-877-4626 Sales Fees: No-load

Web Address: www.pimco.com Management Fee: 0.25%, 0.25%AInception: 08-31-06 Actual Fees: Mgt:0.50% Dist:—Advisor: Pacific Investment Management Co LLC Expense Projections: 3Yr:$176 5Yr:$307 10Yr:$689Subadvisor: None Income Distribution: Monthly


ß® Mutual Funds D

46

Fund Name: Commerce Bond (Ticker: CFBNX) Manager: Commerce

Asset Class: Intermediate-Term Bond Fund Type: Active


Diagnostics Report

Commerce Bond passes 9 of 9 of our investable fund criteria. The fund has a strong long-term track record, ranking in the top third of its peer group on a 1-year, 3-year,

and 5-year basis.

Fund DescriptionThe fund seeks total return through current income and capital appreciation. The investment team invests primarily in a broad range of government and investment-grade corporate bonds and other fixed-income securities.



The fund’s expense ratio is 0.67%,below the intermediate-term bondcategory average of 0.80%.


Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s 3-year sharpe ratio is1.16%, above the intermediate-termbond category average of 0.90%.

The fund’s 3-year alpha is 0.64%,above the intermediate-term bondcategory average of 0.03%.

The fund’s 3-year standard deviationis 2.70%, below the intermediate-termbond category average of 2.94%.

The fund’s 3-year r-squared is 92.93%,above the intermediate-term bondcategory average of 85.46%.

The fund’s turnover ratio is 17%,below the intermediate-term bondcategory average of 231.74%.

47

Commerce Bond Fund CFBNX Morningstar Analyst Rating—


19.77 [0.00 | 0.03 3.40 1 Open $1,000 None 0.67% QQQQQ Intermediate-TermBond

0

Growth of 10,000 01-30-2007 - 01-30-2017

10K

12K

15K

17K

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Commerce Bond Fund$16,822.10Intermediate-Term Bond$14,744.95BBgBarc US Agg Bond TRUSD $15,368.82

Investment Strategy

The investment seeks total return through current income and, secondarily, capital appreciation. The fund invests at least 80%of its net assets plus any borrowings for investment purposes in bonds. It may invest up to 80% of its total assets in mortgage-backed and asset-backed securities. The fund may invest up to 10% of its total assets in high yield securities known as junkbonds and up to 35% of its total assets in obligations rated BBB or Baa by one of the major credit rating agencies.



Growth of 10,000 10,026 10,026 10,355 10,879 11,641 16,811Fund 0.26 0.26 3.55 2.85 3.09 5.33+/- BBgBarc US Agg BondTR USD

0.20 0.20 2.23 0.26 0.99 0.95

+/- Category 0.03 0.03 0.89 0.45 0.64 1.13% Rank in Cat 39 39 27 24 21 9# of Funds in Cat 1,025 1,025 962 848 738 531* Currency is displayed in USD

Top Holdings 11-30-2016Weight % Maturity Date Amount Mil Value Mil

Y Winwater Mtg Ln Tr 2015-5 CMO 1.14 08-20-2045 12.16 12.23US Treasury Note 0.75% 0.93 12-31-2017 10.00 9.98US Treasury Bond 2.75% 0.89 11-15-2042 10.00 9.53US Treasury Note 2.125% 0.76 08-31-2020 8.00 8.14Ms Bofa Ml Tr 2015-C21 CMO 3.14333% 0.75 03-17-2048 7.83 8.02


T Increase Y Decrease R New to Portfolio

Top Sectors 11-30-2016Fund BMark Cat Avg

Corporate Bond 44.91 — 28.16Asset-Backed 13.97 — 3.68Non-Agency Residential MBS 12.74 — 1.01Commercial MBS 8.14 — 12.13U.S. Treasury 4.26 — 17.90

Fund Cat Avg

0 15 30 45 60


DistributionNAV



Return ofCapital

DividendIncome

DistributionTotal

12-30-2016 19.77 0.0000 0.0000 0.0000 0.0600 0.060012-02-2016 19.75 0.0100 0.0000 0.0000 0.0000 0.010011-30-2016 19.77 0.0000 0.0000 0.0000 0.0600 0.060010-31-2016 20.22 0.0000 0.0000 0.0000 0.0500 0.050009-30-2016 20.36 0.0000 0.0000 0.0000 0.0600 0.0600



Low Avg High

(869)


Pillars


Rating .

Style Map 12-31-2016

Ltd Mod Ext

HighM

edLow

Bond Statistics Value

Average Effective Duration (Years) 5.43Average Effective Maturity (Years) 7.53Average Credit Quality BBBAverage Weighted Coupon 3.86Average Weighted Price 103.18

Asset Allocation

Asset Class % Net



Scott M. Colbert 12-12-1994Brent L. Schowe 03-01-2012



®



®

Page 1 of 11

48

Fund Name: JPMorgan Core Plus Bond R6 (Ticker: JCPUX) Manager: JPMorgan

Asset Class: Intermediate-Term Bond Fund Type: Active

Morningstar Rating: Status: New Fund Option

Diagnostics Report

JPMorgan Core Plus Bond R6 passes 9 of 9 of our investable fund criteria. The fund has a strong track record, ranking in the top third of its peer group on a 1-year, 3-year,

and 5-year basis. As of the end of the fourth quarter, the fund has found value in longer-duration agency commercial mortgage-backed securities as well as in shorter-

duration consumer credit services. The investment team has also been investing opportunistically in high-yield and emerging markets debt.

Fund DescriptionJPMorgan Core Plus Bond R6 seeks income and capital appreciation by integrating high quality core bonds with dynamic sector allocation and a macro overlay. The fundmanagers combine bottom-up security selection with top down analysis to improve potential for attractive risk-adjusted returns and increased income.



The fund’s expense ratio is 0.40%,below the intermediate-term bondcategory average of 0.80%.


Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s 3-year sharpe ratio is1.22%, above the intermediate-termbond category average of 0.90%.

The fund’s 3-year alpha is 0.86%,above the intermediate-term bondcategory average of 0.03%.

The fund’s 3-year standard deviationis 2.84%, below the intermediate-termbond category average of 2.94%.

The fund’s 3-year r-squared is 92.03%,above the intermediate-term bondcategory average of 85.46%.

The fund’s turnover ratio is 45%,below the intermediate-term bondcategory average of 231.74%.

49


JPMorgan Core Plus Bond R6 TickerJCPUX

Yield2.8%

SEC Yield2.67%


Mstar CategoryIntermediate-TermBond

Benchmark 1: BBgBarc US Agg Bond TR USDBenchmark 2: BBgBarc US Agg Bond TR USD


‰Morningstar Pillars

Process ¶ NeutralPerformance ∞ PositivePeople ¶ NeutralParent ∞ PositivePrice ∞ Positive



Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.0

14.0

16.0

18.0


HighAverageQQQQQHighest

6 6 6 6 6 6 6 5 Investment StyleFixed Income

Growth of $10,000


* & * * & * * & & * & Performance Quartile(within Category)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12-16 History7.71 7.78 7.08 7.74 8.12 8.26 8.51 8.16 8.31 8.06 8.17 NAV4.47 6.29 -3.44 16.19 10.35 7.00 7.32 0.42 6.39 0.35 4.25 Total Return %0.14 -0.68 -8.68 10.26 3.81 -0.84 3.10 2.44 0.43 -0.20 1.60 +/- Bmark 10.14 -0.68 -8.68 10.26 3.81 -0.84 3.10 2.44 0.43 -0.20 1.60 +/- Bmark 25.24 5.36 5.83 6.60 5.38 5.23 4.19 3.94 3.82 3.22 2.92 Income Return %

-0.77 0.92 -9.27 9.59 4.97 1.77 3.12 -3.52 2.58 -2.87 1.33 Capital Return %26 22 48 30 11 27 42 10 17 30 21 Total Rtn % Rank Cat


15 26 31 17 26 22 23 25 25 52 45 Turnover Rate %12 9 11 35 150 70 249 310 716 2,342 4,292 Net Assets $mil


2012 1.96 1.83 2.29 1.05 7.322013 0.69 -1.91 0.88 0.79 0.422014 2.42 2.13 0.21 1.50 6.392015 1.89 -1.34 0.59 -0.75 0.352016 2.74 2.81 1.13 -2.41 4.25


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo -2.41 0.57 0.56 38 9,7596 Mo -1.30 1.23 1.23 35 9,8701 Yr 4.25 1.60 1.60 21 10,4253 Yr Avg 3.63 0.60 0.60 10 11,1305 Yr Avg 3.70 1.47 1.47 11 11,99410 Yr Avg 5.38 1.04 1.04 7 16,88915 Yr Avg — — — — —




Load-AdjReturn %




1 Yr 4.253 Yr 3.63 High Avg QQQQQ5 Yr 3.70 +Avg -Avg QQQQQ10 Yr 5.38 High Avg QQQQQIncept 5.14







%Assets

US Treasury Note 2.625% 11-15-20 209,142 216,495 2.87US Treasury Note 1.5% 05-31-20 164,545 164,050 2.18US Treasury Note 1% 12-15-17 149,100 149,234 1.98US Treasury Note 1% 03-15-18 119,000 119,028 1.58US Treasury Note 1.375% 06-30-18 85,296 85,732 1.14US Treasury Note 1% 05-31-18 64,000 63,972 0.85US Treasury Bond 3% 11-15-44 64,035 63,517 0.84Fed Natl Mort Assc 3.5% 12-15-46 60,000 61,556 0.82US Treasury Bond 3.75% 11-15-43 44,972 51,238 0.68US Treasury Bond 2.875% 08-15-45 50,000 48,273 0.64U S Treas Sec Stripped 05-15-29 67,000 47,744 0.63US Treasury Bond 4.375% 05-15-41 37,318 46,389 0.62US Treasury Bond 3% 11-15-45 42,852 42,403 0.56US Treasury Bond 3% 05-15-45 42,260 41,849 0.56FNMA 3.5% 01-01-44 40,016 41,304 0.55U S Treas Sec Stripped 08-15-28 48,829 35,614 0.47US Treasury Bond 2.5% 02-15-45 39,408 35,226 0.47US Treasury Note 1.5% 12-31-18 30,644 30,867 0.41FNMA 3.07% 02-01-25 29,120 29,890 0.40FHLMC 5% 02-01-34 26,819 29,688 0.39


QualityHigh

Med

Low

DurationLtd Mod Ext


Avg Eff Duration1 5.7 YrsAvg Eff Maturity 7.4 YrsAvg Credit Quality BBBAvg Wtd Coupon 3.80%Avg Wtd Price 100.75% of par



Credit Analysis % bonds 09-30-16

AAA 58 BB 10AA 3 B 2A 10 Below B 1BBB 11 Not Rated 6



Composition - Net


Special Securities


Morningstar's Take by Cara Esser, CFA 10-31-16Lead managers Steven Lear and Andrew Norelli are offto a good start at JPMorgan Core Plus Bond: The fund hasoutpaced more than 80% of peers under their care andhas done so with less volatility. The fund's fees also rankamong the lowest in its peer group. A bout of turnover onthe historically stable Columbus, OH-based Value Drivenfixed-income team, however, warrants caution. The fundearns a Morningstar Analyst Rating of Neutral for now.

This fund’s management team includes sleevemanagers who pick individual holdings for the fund, whileLear and Norelli make decisions about allocation,duration, and curve positioning. The current rosterincludes sleeve managers Rick Figuly (based in Columbus,Ohio, and portfolio manager of J.P. Morgan’s flagshipCore Bond WOBDX) and Frederick Sabetta (based inCincinnati, OH, and portfolio manager of the firm’s high-yield funds). Both were named to this fund in 2006. Learand Norelli officially took the reins in late 2013 and early2014, respectively, after the previous lead managersretired. Norelli worked with the previous managementteam beginning in late 2012. In the spring of 2016, thefund’s longest tenured manager, Mark Jackson,

unexpectedly left the firm for a competitor. Most recently,a senior member of the investment-grade credit teamalso departed. J.P. Morgan’s Columbus team hashistorically been very stable and the recent spate ofturnover (on this and other funds) is concerning.

This fund falls into the Intermediate Term Bondcategory, though it packs a little more punch than itsaverage peer and its Bloomberg Barclays U.S. AggregateBond Index benchmark. The fund holds between 5% and20% in junk-rated corporates (the index and many peershold none), up to 10% in emerging-markets debt, and35%-50% in securitized fare. The fund's managers havedone a good job of keeping a lid on volatility despite theadded credit risk.

This fund has a number of positive traits, though morestability among the investment staff would help its overallcase.

Address: Jpmorgan Trust II Minimum Purchase: $15000000 Add: — IRA: —New York, NY 10167 Min Auto Inv Plan: — Add: —800-480-4111 Sales Fees: No-load

Web Address: www.jpmorganfunds.com Management Fee: 0.30%, 0.15%AInception: 02-22-05 Actual Fees: Mgt:0.30% Dist:—Advisor: J.P. Morgan Investment Management Inc Expense Projections: 3Yr:$133 5Yr:$236 10Yr:$537Subadvisor: None Income Distribution: Monthly


ß® Mutual Funds D

50

Fund Name: Federated Instl High Yield Bond Instl (Ticker: FIHBX) Manager: Federated

Asset Class: High-Yield Bond Fund Type: Active


Diagnostics Report

Federated Institutional High Yield Bond Instl passes 8 of 9 of our investable fund criteria. The fund falls within an acceptable range for volatility. Federated Institutional High

Yield Bond Instl has a formidable track record, ranking in the top third of its peer group on a 1-year, 3-year, and 5-year basis.

Fund DescriptionThe fund seeks a high level of current income by investing in below investment-grade securities, providing exposure to the higher-yielding, lower-rated, corporate bondmarket. Investors have the potential for attractive relative total returns in economic recoveries through ratings upgrades or improved performance of issuing companies.



The fund’s expense ratio is 0.49%,below the high-yield bond categoryaverage of 1.07%.


Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s 3-year sharpe ratio is0.90%, above the high-yield bondcategory average of 0.64%.

The fund’s 3-year alpha is 3.47%,above the high-yield bond categoryaverage of 2.29%.

The fund’s 3-year standard deviationis 5.52%, above the high-yield bondcategory average of 5.49%.

The fund’s 3-year r-squared is7.88%, above the high-yield bondcategory average of 4.09%.

The fund’s turnover ratio is 23%,below the high-yield bond categoryaverage of 71.15%.

51

Federated Institutional High Yield Bond Fund Institutional SharesFIHBX


—


9.95 [0.00 | 0.02 5.75 6 Open $1 None 0.49% QQQQQ High Yield Bond 3 Small Value

Growth of 10,000 01-30-2007 - 01-30-2017

7K

12K

16K

21K

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Federated Institutional HighYield Bond Fund InstitutionalShares $20,653.91High Yield Bond $17,153.44BBgBarc US Agg Bond TRUSD $15,368.82

Investment Strategy

The investment seeks high current income. The fund pursues its investment objective by investing primarily in a diversified port-folio of high yield corporate bonds (also known as "junk bonds"), which include debt securities issued by U.S. or foreign busi-nesses (including emerging market debt securities). The Adviser does not limit the fund's investments to securities of a particu-lar maturity range. It may invest in derivative contracts (for example, futures contracts, option contracts and swap contracts) toimplement its investment strategies.




1.26 1.26 16.49 2.68 5.02 3.15

+/- Category 0.08 0.08 1.31 1.79 1.32 1.60% Rank in Cat 41 41 40 6 10 4# of Funds in Cat 733 733 699 594 472 315* Currency is displayed in USD


High Yield Bond Portfolio 5.31 — 45.25 286.46

T First Data Corp New 144A 5.75% 0.86 01-15-2024 44.98 46.38

T Crimson Merger Sub / Ortho-C 144A 6.625% 0.75 05-15-2022 45.63 40.38

T Jaguar Hldg Co Ii / Jaguar M 144A 6.375% 0.73 08-01-2023 37.78 39.38

T Chs / Cmnty Health Sys 6.875% 0.65 02-01-2022 40.75 35.25




Corporate Bond 96.56 — 84.82Convertible 1.11 — 0.44Bank Loan 0.00 — 3.27Preferred 0.00 — 0.12Agency Mortgage-Backed 0.00 — 0.38

Fund Cat Avg

0 30 60 90 120


DistributionNAV



Return ofCapital

DividendIncome

DistributionTotal

12-30-2016 9.86 0.0000 0.0000 0.0000 0.0500 0.050011-30-2016 9.74 0.0000 0.0000 0.0000 0.0500 0.050010-31-2016 9.84 0.0000 0.0000 0.0000 0.0500 0.050009-30-2016 9.89 0.0000 0.0000 0.0000 0.0500 0.050008-31-2016 9.88 0.0000 0.0000 0.0000 0.0500 0.0500



Low Avg High

(602)


Pillars


Rating .


Ltd Mod Ext

HighM

edLow


Average Effective Duration (Years) —Average Effective Maturity (Years) 4.70Average Credit Quality BAverage Weighted Coupon 6.31Average Weighted Price 101.75

Asset Allocation

Asset Class % Net



Mark E. Durbiano 11-01-2002



®



®

Page 1 of 11

52

Fund Name: Eaton Vance High Income Opportunities Fund I (Ticker: EIHIX) Manager: Eaton Vance

Asset Class: High-Yield Bond Fund Type: Active


Diagnostics Report

Eaton Vance High Income Opportunities passes 9 of 9 of our investable fund criteria. The fund remains cautiously optimistic as it enters 2017 as it believes high-yield bond

valuations appear to be fairly priced. With that in mind, the portfolio managers maintain a conservative bond positioning, including a shorter duration relative to the BofA

Merrill Lynch U.S. High Yield Index.

Fund DescriptionThe fund seeks to maximize total return by investing in a diversified portfolio of high-yield, high-risk corporate bonds. The investment team utilizes fundamental bottom-up credit research with an emphasis on risk management and relative-value investing to achieve competitive risk-adjusted returns.



The fund’s expense ratio is 0.61%,below the high-yield bond categoryaverage of 1.07%.


Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s 3-year sharpe ratio is1.02%, above the high-yield bondcategory average of 0.64%.

The fund’s 3-year alpha is 3.85%,above the high-yield bond categoryaverage of 2.29%.

The fund’s 3-year standard deviationis 4.85%, below the high-yield bondcategory average of 5.49%.

The fund’s 3-year r-squared is5.50%, above the high-yield bondcategory average of 4.09%.

The fund’s turnover ratio is 39%,below the high-yield bond categoryaverage of 71.15%.

53

Eaton Vance High Income Opportunities Fund Class I EIHIX Morningstar Analyst Rating„


4.52 [-0.01 | -0.21 5.75 1 Open $250,000 None 0.61% QQQQQ High Yield Bond 8 Mid Growth

Growth of 10,000 01-30-2007 - 01-30-2017

6K

10K

14K

18K

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Eaton Vance High IncomeOpportunities Fund Class I$18,346.08High Yield Bond $17,153.44BBgBarc US Agg Bond TRUSD $15,368.82

Investment Strategy

The investment seeks to provide a high level of current income; growth of capital is a secondary investment objective. The fundinvests at least 80% of its net assets (plus any borrowings for investment purposes) in fixed-income securities, including pre-ferred stocks and other hybrid securities (many of which have fixed maturities), senior and subordinated floating rate loans("bank loans") and convertible securities. The fund invests primarily in high yield, high risk corporate bonds. The fund invests asubstantial portion of its assets in bonds issued in connection with mergers, acquisitions and other highly-leveraged transac-tions.




1.03 1.03 13.51 2.62 5.43 1.87

+/- Category -0.15 -0.15 -1.66 1.73 1.73 0.32% Rank in Cat 67 67 70 7 7 —# of Funds in Cat 733 733 699 594 472 315* Currency is displayed in USD


T Mph Acquisition Hldgs 144A 7.125% 1.10 06-01-2024 18.18 19.15Peninsula Gaming Llc 01jul16 Call 0.98 12-31-2049 0.03 17.07Sprint 7.875% 0.95 09-15-2023 15.99 16.54T Mobile Usa 6.5% 0.83 01-15-2026 13.34 14.44Laureate Educ 144A 9.25% 0.74 09-01-2019 13.21 12.76




Corporate Bond 89.39 — 84.82Bank Loan 5.25 — 3.27Convertible 1.62 — 0.44Non-Agency Residential MBS 0.41 — 0.32Asset-Backed 0.20 — 0.44

Fund Cat Avg

0 30 60 90 120


DistributionNAV



Return ofCapital

DividendIncome

DistributionTotal

12-30-2016 4.49 0.0000 0.0000 0.0000 0.0200 0.020011-30-2016 4.44 0.0000 0.0000 0.0000 0.0200 0.020010-31-2016 4.47 0.0000 0.0000 0.0000 0.0200 0.020009-30-2016 4.49 0.0000 0.0000 0.0000 0.0200 0.020008-31-2016 4.49 0.0000 0.0000 0.0000 0.0200 0.0200



Low Avg High

(602)


Pillars

Process ∞ PositivePerformance ∞ PositivePeople ∞ PositiveParent ¶ NeutralPrice ∞ Positive

Rating „


Ltd Mod Ext

HighM

edLow


Average Effective Duration (Years) 3.32Average Effective Maturity (Years) 4.37Average Credit Quality BAverage Weighted Coupon 6.71Average Weighted Price 102.19

Asset Allocation

Asset Class % Net



Michael W.Weilheimer 01-01-1996

Kelley Baccei 11-03-2014Stephen C.Concannon 11-03-2014



®



®

Page 1 of 11

54

Fund Name: American Century Infl-Adj Bond Inv (Ticker: ACITX) Manager: American Century Investments

Asset Class: Inflation-Protected Bond Fund Type: Active


Diagnostics Report

American Century Infl-Adj Bond Inv passes 7 of 9 of our investable fund criteria. We continue to monitor the fund’s volatility as well as value added. As of quarter-end,

approximately 84% of the portfolio was invested in TIPS. The remainder was invested in securitized bonds, non-U.S. dollar securities, and investment-grade corporate

bonds. The team has a neutral stance on inflation as it believes that headline U.S. inflation is poised to gradually move higher.

Fund DescriptionThe fund invests in investment-grade, inflation-indexed bonds. The investment team employs comprehensive risk management designed to maximize real return per levelof risk.



The fund’s expense ratio is 0.47%,below the inflation-protected bondcategory average of 0.73%.


Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s 3-year sharpe ratio is0.38%, above the inflation-protectedbond category average of 0.31%.

The fund’s 3-year alpha is -1.73%,below the inflation-protected bondcategory average of -1.43%.

The fund’s 3-year standard deviation is4.28%, above the inflation-protectedbond category average of 4.00%.

The fund’s 3-year r-squared is 68.34%,above the inflation-protected bondcategory average of 54.96%.

The fund’s turnover ratio is 14%,below the inflation-protected bondcategory average of 134.21%.

55


American Century Infl-Adj Bond Inv TickerACITX

Yield1.9%

SEC Yield2.46%


Mstar CategoryInflation-ProtectedBond

Benchmark 1: BBgBarc US Treasury US TIPS TR USDBenchmark 2: BBgBarc US Agg Bond TR USD


‰Morningstar Pillars

Process ¶ NeutralPerformance ¶ NeutralPeople ∞ PositiveParent ¶ NeutralPrice ∞ Positive



Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.0

14.0

16.0


Above AvgAbove AvgQQQQAbove Avg


Growth of $10,000


* * & * ( & * ( * * * Performance Quartile(within Category)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12-16 History10.58 11.24 10.56 11.50 11.80 12.74 13.18 11.53 11.62 11.26 11.55 NAV0.06 10.95 -1.01 10.58 5.49 13.00 6.68 -9.12 2.67 -2.15 4.72 Total Return %

-0.35 -0.69 1.34 -0.83 -0.82 -0.56 -0.30 -0.51 -0.97 -0.71 0.04 +/- Bmark 1-4.28 3.98 -6.25 4.65 -1.05 5.16 2.46 -7.10 -3.29 -2.70 2.08 +/- Bmark 23.64 4.49 5.37 1.68 2.27 3.91 2.36 1.33 1.55 0.96 2.01 Income Return %

-3.58 6.46 -6.38 8.90 3.22 9.09 4.32 -10.45 1.12 -3.10 2.71 Capital Return %42 36 18 40 67 18 33 68 38 48 36 Total Rtn % Rank Cat


27 32 33 18 27 33 26 27 17 18 14 Turnover Rate %621 647 973 2,084 2,659 3,164 3,701 2,000 1,812 1,483 1,646 Net Assets $mil


2012 0.86 3.08 2.06 0.54 6.682013 -0.38 -7.51 0.74 -2.09 -9.122014 1.73 3.60 -2.25 -0.34 2.672015 1.20 -1.50 -1.13 -0.72 -2.152016 4.44 1.59 1.27 -2.53 4.72


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo -2.53 -0.12 0.44 70 9,7476 Mo -1.30 0.17 1.23 57 9,8701 Yr 4.72 0.04 2.08 36 10,4723 Yr Avg 1.71 -0.55 -1.32 33 10,5215 Yr Avg 0.40 -0.49 -1.84 54 10,20010 Yr Avg 3.97 -0.39 -0.37 29 14,76715 Yr Avg 4.80 -0.50 0.21 50 20,192

Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat3 Yr (estimated) 1.02 31 0.67 695 Yr (estimated) -0.44 52 0.83 6910 Yr (estimated) 2.90 19 1.04 58



Load-AdjReturn %




1 Yr 4.723 Yr 1.71 Avg +Avg QQQ5 Yr 0.40 Avg +Avg QQQ10 Yr 3.97 +Avg Avg QQQQIncept 4.90







%Assets

US Treasury Note 01-15-22 173,250 188,226 5.81US Treasury TIP 1.25% 07-15-20 154,250 182,025 5.62US Treasury Bond 01-15-26 109,450 156,199 4.82US Treasury Bond 01-15-25 96,086 146,453 4.52US Treasury TIP 01-15-23 121,800 129,190 3.99US Treasury Note 04-15-19 104,250 108,932 3.36US Treasury Note 07-15-21 95,270 106,927 3.30US Treasury Note 04-15-20 100,700 105,560 3.26US Treasury Bond 02-15-44 84,670 104,371 3.22US Treasury Note 04-15-18 97,000 102,118 3.15US Treasury Note 01-15-24 93,500 101,345 3.13US Treasury Note 07-15-22 92,800 99,565 3.08US Treasury Bond 01-15-27 66,325 97,279 3.00Us 2yr Note (Cbt) Dec16 12-30-16 84,600 92,412 2.85US Treasury Note 01-15-25 82,250 85,271 2.63US Treasury Bond 02-15-42 72,000 79,535 2.46Us 10yr Note (Cbt)dec16 12-20-16 58,400 76,577 2.37US Treasury Note 07-15-25 70,500 74,026 2.29US Treasury TIP 1.75% 01-15-28 54,541 73,527 2.27US Treasury Note 07-15-24 65,800 67,791 2.09


QualityHigh

Med

Low

DurationLtd Mod Ext


Avg Eff Duration1 6.4 YrsAvg Eff Maturity 9.0 YrsAvg Credit Quality AAAAvg Wtd Coupon 1.46%Avg Wtd Price 120.92% of par




AAA 94 BB 1AA 2 B 0A 2 Below B 0BBB 2 Not Rated -1



Composition - Net


Special Securities


Morningstar's Take by Gretchen Rupp 04-08-16American Century Inflation-Adjusted Bond has one of thelongest records in the inflation-protected bondMorningstar Category, dating back to 1997. The strategyhas remained straightforward since inception and duringlead manager Bob Gahagan's tenure, which began in late2001. His team uses mostly U.S. Treasury Inflation-Protected Securities, making subtle plays along the yieldcurve and adjustments to the fund’s overall exposure toinflation based on the firm’s macro outlook. This approachhas led to steady returns that beat nearly 70% of peersduring the 10 years ended February 2016. But the fundhas lagged its benchmark and cheaper passivealternatives by about 50 and 25 basis points, respectively,in the same time period. The fund earns a MorningstarAnalyst Rating of Neutral.

However, starting in 2015, the team increased itsexposure to nondollar, inflation-adjusted corporates,though they haven't targeted a specific allocation.Notably, the team has kept its weighting at siblingAmerican Century Diversified Bond ACBPX to about 10%(with modest success in its non-U.S. dollar securityselection). In 2015, it selected positions in European

financials because the managers anticipated a boost fromquantitative easing programs but reduced the weightingby year-end. Also, the team has gained the freedom, asof December 2015, to assume additional credit risk bybuilding synthetic inflation-linked high-yield bonds, whichinvolves pairing a regular high-yield bond with an inflationswap (the allocation was only 1% of the fund as of theend of 2015). Overall, the team can invest up to 20% ofassets in synthetic inflation-adjusted exposures (mainlycorporate bonds and commercial mortgage-backedsecurities). Although the changes give the fund additionalmeans to add value versus its tough-to-beat Barclays U.S.TIPS Index benchmark, they could also hold the fund backin periods when higher-quality bonds rally. The fund hasremained a steady performer under Gahagan's lead. Inparticular, his skill benefited shareholders during thefinancial crisis when this fund beat its benchmark by 60basis points and topped 92% of peers.

Address: AMERICAN CENTURY GOVERNMENT INCOMETRUST

Minimum Purchase: $2500 Add: $50 IRA: —

Kansas City MO 64111 Min Auto Inv Plan: — Add: $50800-345-2021 Sales Fees: No-load

Web Address: www.americancentury.com Management Fee: 0.28% mx./0.16% mn.Inception: 02-10-97 Actual Fees: Mgt:0.46% Dist:—Advisor: American Century Investment Management Inc Expense Projections: 3Yr:$151 5Yr:$264 10Yr:$592Subadvisor: None Income Distribution: Monthly


ß® Mutual Funds D

56

Fund Name: Goldman Sachs Global Income Instl (Ticker: GSGLX) Manager: Goldman Sachs

Asset Class: World Bond Fund Type: Active


Diagnostics Report

Goldman Sachs Global Income Instl passes 8 of 9 of our investable fund criteria. We continue to monitor the fund’s turnover as it’s above the category average. The fund

managers currently believe relative value strategies are more attractive than directional risk in the current environment and expect higher volatility to create opportunities.

Goldman Sachs Global Income Instl is currently underweighting the U.S. on a relative value basis in favor of Norway and Canada over the U.S. Currency exposure is

biased towards strengthening in the U.S. dollar versus other G10 currencies, due to monetary policy divergence and differences in growth and inflation outlooks.

Fund DescriptionThe fund seeks high total return, current income and capital appreciation by investing in fixed income securities and currencies across developed and emerging marketeconomies. The team hedges the portfolio to the U.S. dollar, with the ability to express limited currency and country views across world markets.



The fund’s expense ratio is0.69%, below the world bondcategory average of 1.02%.

The fund has $881 million inassets under management.

Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s 3-year sharpe ratiois 1.43%, above the world bondcategory average of 0.21%.

The fund’s 3-year alpha is1.43%, above the world bondcategory average of -2.31%.

The fund’s 3-year standard deviationis 2.40%, below the world bondcategory average of 5.17%.

The fund’s 3-year r-squared is77.68%, above the world bondcategory average of 37.49%.

The fund’s turnover ratio is261%, above the world bondcategory average of 136.90%.

57

Goldman Sachs Global Income Fund Institutional GSGLX Morningstar Analyst Rating—


12.09 [0.00 | 0.00 1.30 910 Open $1 None 0.69% QQQQ World Bond 0

Growth of 10,000 01-30-2007 - 01-30-2017

10K

12K

14K

16K

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Goldman Sachs GlobalIncome Fund Institutional$15,525.06World Bond $14,256.61BBgBarc US Agg Bond TRUSD $15,368.82

Investment Strategy

The investment seeks a high total return, emphasizing current income, and, to a lesser extent, providing opportunities for capit-al appreciation. The fund normally invests at least 80% of its net assets plus any borrowings for investment purposes (meas-ured at the time of purchase) ("Net Assets") in a portfolio of fixed income securities of U.S. and foreign issuers. Foreign securit-ies include securities of issuers located outside the U.S. or securities quoted or denominated in a currency other than the U.S.dollar. It also enters into transactions in foreign currencies, typically through the use of forward contracts and swap contracts. Itis non-diversified.



Growth of 10,000 9,951 9,951 10,188 10,936 11,919 15,519Fund -0.49 -0.49 1.88 3.03 3.57 4.49+/- BBgBarc US Agg BondTR USD

-0.55 -0.55 0.56 0.44 1.48 0.11

+/- Category -1.16 -1.16 -2.40 2.51 2.55 0.67% Rank in Cat 93 93 76 16 13 31# of Funds in Cat 358 358 334 314 239 130* Currency is displayed in USD


R Fed Natl Mort Assc 3% 8.24 09-15-2046 68.00 70.74

R Fed Natl Mort Assc 3% -8.24 09-15-2046 68.00 -70.74

R Fed Natl Mort Assc 3.5% -6.89 09-15-2046 56.00 -59.14

R Fed Natl Mort Assc 3.5% 6.89 09-15-2046 56.00 59.14

R GNMA -6.25 09-01-2046 50.00 -53.66

% Assets in Top 5 Holdings -6.25



Government 36.39 — 34.48Commercial MBS 28.94 — 5.93Corporate Bond 16.69 — 18.04Asset-Backed 6.37 — 1.01Agency Mortgage-Backed 4.03 — 1.07

Fund Cat Avg

0 10 20 30 40


DistributionNAV



Return ofCapital

DividendIncome

DistributionTotal

12-30-2016 12.16 0.0000 0.0000 0.0000 0.0100 0.010012-14-2016 12.08 0.0000 0.0500 0.0000 0.0000 0.050011-30-2016 12.16 0.0000 0.0000 0.0000 0.0100 0.010010-31-2016 12.38 0.0000 0.0000 0.0000 0.0100 0.010009-30-2016 12.50 0.0000 0.0000 0.0000 0.0100 0.0100


Risk vs. Category Low

Low Avg High

(318)


Pillars


Rating .


Ltd Mod Ext

HighM

edLow


Average Effective Duration (Years) 6.48Average Effective Maturity (Years) —Average Credit Quality Not RatedAverage Weighted Coupon 3.06Average Weighted Price —

Asset Allocation

%Net

%Short

%Long

Benchmark

CatAvg

Cash 0.10 8.51 8.61 0.00 11.56US Stock 0.00 0.00 0.00 0.00 -0.16Non US Stock 0.00 0.00 0.00 0.00 0.13Bond 99.29 28.14 127.42 100.00101.83Other 0.61 0.46 1.07 0.00 -13.36


Andrew F. Wilson 12-31-1995Iain Lindsay 12-31-2001



®



®

Page 1 of 11

58

Fund Name: Payden Emerging Markets Bond (Ticker: PYEMX) Manager: Payden & Rygel

Asset Class: Emerging Markets Bond Fund Type: Active


Diagnostics Report

Payden Emerging Markets Bond passes 9 of 9 of our investable fund criteria. The fund managers believe even with tighter U.S. monetary policy ahead in 2017, emerging

market debt remains resilient. Improving emerging market fundamentals, solid foreign exchange reserve buffers, sustainable debt levels, and contained inflation pressure

should help support emerging market bond prices.

Fund DescriptionPayden Emerging Markets Bond Fund invests in a diversified portfolio of emerging-market sovereign and corporate bonds. The fund managers analyze macroeconomicvariables, sovereign credit ratios, political stability, and the quality of the country’s business environment in security selection. Although most of the fund’s investmentsare U.S. dollar-denominated, fund managers will also invest in select local markets to take advantage of attractive opportunities.



The fund’s expense ratio is 0.75%,below the emerging markets bondcategory average of 1.16%.


Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s 3-year sharpe ratio is0.81%, above the emerging marketsbond category average of 0.43%.

The fund’s 3-year alpha is 2.32%,above the emerging markets bondcategory average of 0.33%.

The fund’s 3-year standard deviation is6.31%, below the emerging marketsbond category average of 7.15%.

The fund’s 3-year r-squared is 21.61%,above the emerging markets bondcategory average of 14.51%.

The fund’s turnover ratio is 46%,below the emerging markets bondcategory average of 337.3%.

59

Payden Emerging Markets Bond Fund Investor Class PYEMX Morningstar Analyst Rating—


13.57 [-0.06 | -0.02 5.60 1.1 Open $100,000 None 0.75% QQQQ Emerging MarketsBond

0

Growth of 10,000 01-30-2007 - 01-30-2017

8K

12K

15K

19K

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Payden Emerging MarketsBond Fund Investor Class$18,784.22Emerging Markets Bond$15,025.90BBgBarc US Agg Bond TRUSD $15,368.82

Investment Strategy

The investment seeks a high level of total return. Under normal market conditions, the fund invests at least 80% of its total as-sets in debt securities and similar debt instruments issued by governments, agencies and instrumentalities of emerging marketcountries (or economically linked with such securities), and other issuers organized, headquartered or principally located inemerging market countries. The fund is non-diversified.




1.41 1.41 12.42 3.38 2.95 2.10

+/- Category -0.10 -0.10 0.44 2.30 1.44 0.55% Rank in Cat 59 59 46 16 24 38# of Funds in Cat 308 308 275 217 114 48* Currency is displayed in USD


R Us 10yr Note (Cbt)mar17 -7.79 03-22-2017 0.00 -84.93Azerbaijan Rep 4.75% 1.49 03-18-2024 16.40 16.24Argentine Republic 8.28% 1.42 12-31-2033 15.31 15.46Honduras Rep 8.75% 1.40 12-16-2020 14.09 15.31Kenya Rep 5.875% 1.31 06-24-2019 13.95 14.22

% Assets in Top 5 Holdings -2.17



Government 62.10 — 54.89Corporate Bond 18.61 — 26.73Agency/Quasi-Agency 3.70 — 0.69Supranational 0.93 — 0.39Other Government Related 0.00 — 2.87

Fund Cat Avg

0 20 40 60 80


DistributionNAV



Return ofCapital

DividendIncome

DistributionTotal

01-30-2017 13.57 0.0000 0.0000 0.0000 0.0600 0.060012-29-2016 13.42 0.0000 0.0000 0.0000 0.0800 0.080011-29-2016 13.31 0.0000 0.0000 0.0000 0.0500 0.050010-28-2016 13.94 0.0000 0.0000 0.0000 0.0700 0.070009-29-2016 14.15 0.0000 0.0000 0.0000 0.0800 0.0800



Low Avg High

(220)


Pillars


Rating .


Ltd Mod Ext

HighM

edLow


Average Effective Duration (Years) 5.94Average Effective Maturity (Years) 9.26Average Credit Quality BBAverage Weighted Coupon 6.29Average Weighted Price —

Asset Allocation

%Net

%Short

%Long

Benchmark

CatAvg

Cash 9.17 6.52 15.68 — 4.13US Stock 0.00 0.00 0.00 — -0.03Non US Stock 0.00 0.00 0.00 — 0.16Bond 88.41 7.79 96.20 — 95.59Other 2.43 0.00 2.43 — 0.14


Kristin Ceva 12-17-1998Arthur Hovsepian 02-28-2013Vladimir Milev 02-28-2013



®



®

Page 1 of 11

60

Fund Name: Goldman Sachs Emerging Mkt Debt Instl (Ticker: GSDIX) Manager: Goldman Sachs

Asset Class: Emerging Markets Bond Fund Type: Active


Diagnostics Report

Goldman Sachs Emerging Mkt Debt Instl passes 9 of 9 of our investable fund criteria. The fund managers continue to favor countries with prudent fiscal management and

where valuations offer an attractive balance between risk and reward.

Fund DescriptionGoldman Sachs Emerging Mkt Debt Instl invests in a diversified basket of developed and emerging market bonds. The fund seeks total return with income and capitalappreciation.



The fund’s expense ratio is 0.89%,below the emerging markets bondcategory average of 1.16%.


Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s 3-year sharpe ratio is0.92%, above the emerging marketsbond category average of 0.43%.

The fund’s 3-year alpha is 2.86%,above the emerging markets bondcategory average of 0.33%.

The fund’s 3-year standard deviation is6.26%, below the emerging marketsbond category average of 7.15%.

The fund’s 3-year r-squared is 23.69%,above the emerging markets bondcategory average of 14.51%.

The fund’s turnover ratio is 99%,below the emerging markets bondcategory average of 337.3%.

61

Goldman Sachs Emerging Markets Debt Fund Institutional SharesGSDIX


—


12.54 [-0.01 | -0.07 5.25 2 Open $1 None 0.89% QQQQ Emerging MarketsBond

0

Growth of 10,000 01-30-2007 - 01-30-2017

8K

12K

16K

21K

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Goldman Sachs EmergingMarkets Debt FundInstitutional Shares$19,983.65Emerging Markets Bond$15,025.90BBgBarc US Agg Bond TRUSD $15,368.82

Investment Strategy

The investment seeks a high level of total return consisting of income and capital appreciation. The fund normally invests atleast 80% of its net assets plus any borrowings for investment purposes in sovereign and corporate debt securities and otherinstruments of issuers in emerging market countries. The advisor intends to use structured securities or derivatives, includingbut not limited to credit linked notes, financial future contracts, forward contracts and swap contracts to gain exposure to cer-tain countries or currencies. It may invest in all types of foreign and emerging country fixed income securities. The fund is non-diversified.




1.41 1.41 11.34 4.07 3.68 2.77

+/- Category -0.10 -0.10 -0.64 2.99 2.17 1.22% Rank in Cat 59 59 54 10 11 17# of Funds in Cat 308 308 275 217 114 48* Currency is displayed in USD


R Russian Govt 4.75% 27 May 2026 Regs 2.38 05-27-2026 37.20 40.71

T Hungary Rep 6.25% 1.91 01-29-2020 28.77 32.64

T Indonesia Rep 5.875% 1.67 01-15-2024 24.05 28.65

R Petroleos Mexicanos Mtn Reg S 6.875% 1.40 08-04-2026 21.04 23.95

R United Mexican Sts Mtn Be 4% 1.32 10-02-2023 20.68 22.53




Government 68.87 — 54.89Corporate Bond 21.64 — 26.73Agency/Quasi-Agency 1.27 — 0.69Asset-Backed 0.55 — 0.06Preferred 0.20 — 0.00

Fund Cat Avg

0 20 40 60 80



Low Avg High

(220)


Pillars


Rating .


Ltd Mod Ext

HighM

edLow


Average Effective Duration (Years) 6.60Average Effective Maturity (Years) —Average Credit Quality Not RatedAverage Weighted Coupon 5.93Average Weighted Price —

Asset Allocation

%Net

%Short

%Long

Benchmark

CatAvg

Cash 3.67 1.44 5.11 — 4.13US Stock 0.00 0.00 0.00 — -0.03Non US Stock 0.00 0.00 0.00 — 0.16Bond 95.00 0.47 95.48 — 95.59Other 1.33 0.12 1.45 — 0.14


Samuel Finkelstein 12-31-2003Ricardo Penfold 12-31-2003



®



®

Page 1 of 22

62

aavila

Rectangle

Fund Name: Cohen & Steers Real Estate Securities A (Ticker: CSEIX) Manager: Cohen & Steers

Asset Class: Real Estate Fund Type: Active


Diagnostics Report

Cohen & Steers Real Estate Securities passes 6 of 9 of our investable fund criteria. The fund falls within an acceptable range for volatility and correlation to its benchmark.

We continue to monitor the fund’s turnover. The fund has a formidable track record, ranking in the top quartile of its peer group on a 1-year, 3-year, and 5-year basis.

Fund DescriptionThe fund seeks to achieve total return through investment in real estate securities. Real estate securities include common stocks, preferred stocks and other equitysecurities of any market capitalization as well as debt securities issued by real estate companies, including real estate investment trusts (REITs) and similar REIT-likeentities.



The fund’s expense ratio is1.23%, below the real estatecategory average of 1.26%.


Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s 3-year sharpe ratiois 1.05%, above the real estatecategory average of 0.87%.

The fund’s 3-year alpha is12.95%, above the real estatecategory average of 9.99%.

The fund’s 3-year standard deviationis 14.35%, above the real estatecategory average of 14.12%.

The fund’s 3-year r-squared is21.71%, below the real estatecategory average of 21.87%.

The fund’s turnover ratio is 95%,above the real estate categoryaverage of 74.28%.

63

Cohen & Steers Real Estate Securities Fund,Inc. Class A CSEIX Morningstar Analyst Rating—


14.03 [-0.09 | -0.64 2.63 3 Open — 4.50 1.23% QQQQQ Real Estate 8 Mid Growth

Growth of 10,000 01-30-2007 - 01-30-2017

3K

8K

13K

18K

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Cohen & Steers Real EstateSecurities Fund,Inc. Class A$16,540.00Real Estate $14,573.01MSCI ACWI NR USD$14,549.27

Investment Strategy

The investment seeks total return through investment in real estate securities. The fund invests at least 80% of its total assetsin income-producing common stocks and other equity securities issued by real estate companies, such as real estate invest-ment trusts ("REITs"). It may invest up to 20% of its total assets in securities of foreign issuers (including emerging market is-suers) which meet the same criteria for investment as domestic companies, including investments in such companies in theform of American Depositary Receipts ("ADRs"), Global Depositary Receipts ("GDRs") and European Depositary Receipts("EDRs"). The fund is non-diversified.



Growth of 10,000 9,957 9,957 11,098 14,793 17,624 16,466Fund -0.43 -0.43 10.98 13.94 12.00 5.11+/- MSCI ACWI NR USD -3.19 -3.19 -6.98 8.62 3.21 1.35+/- Category 0.44 0.44 0.48 3.50 2.60 1.68% Rank in Cat 20 20 28 1 3 7# of Funds in Cat 274 274 267 237 207 137* Currency is displayed in USD


Y Simon Property Group Inc 8.10 183.02 USD 3.09 ] 173.11 - 229.10

Y Prologis Inc 5.58 49.01 USD 0.55 ] 35.25 - 54.87

T UDR Inc 5.07 35.30 USD 1.96 ] 32.79 - 38.61

T AvalonBay Communities Inc 4.40 173.97 USD 1.08 ] 158.32 - 192.29

T SL Green Realty Corp 3.56 109.68 USD 0.58 ] 80.12 - 120.63




u Real Estate 92.57 97.32 92.57 95.18


i CommunicationServices

1.80 1.80 0.00 1.70

d Healthcare 0.69 0.69 0.00 0.11


Fund Cat Avg

0 30 60 90 120


DistributionNAV



Return ofCapital

DividendIncome

DistributionTotal

12-08-2016 13.91 0.1100 0.1300 0.0000 0.1500 0.380009-30-2016 14.94 0.0000 0.0000 0.0000 0.0800 0.080006-30-2016 15.02 0.2100 0.0000 0.0000 0.0800 0.290003-31-2016 14.41 0.0000 0.0000 0.0000 0.0800 0.080012-10-2015 13.35 0.2200 0.1000 0.0000 0.1100 0.4300



Low Avg High

(235)


Pillars


Rating .

Style Map

DeepVal

CoreVal

Core CoreGrow

HighGrow

Micro

Small

Medium

Large



Asset Allocation

Asset Class % Net



Thomas N. Bohjalian 03-28-2006Jason Yablon 05-01-2013



®



®

Page 1 of 11

64


In order to provide participants with lower cost investment alternatives, we include a variety of passively managed or indexed mutual funds as

part of the core fund list. Index funds are selected based upon their consistency tracking a specific asset class, cost structure, fund size, and

investment fee minimums. Although we do not apply the same selection criteria to passively managed index funds as we do to actively

managed funds, we provide a fund scorecard for comparison purposes. Index and passively managed funds are chosen and included due to

their efficiency in tracking particular asset classes. Index & passive funds will therefore tend to post metrics that are closer to the category

averages, resulting in more inconsistent pass/fail scores.

Lastly, please note that we include Morningstar summaries for the various target date mutual funds included on the platform, but we do not

provide a corresponding scorecard. The reason for this is, unlike asset class specific mutual funds, is that target date funds are made up of

various underlying mutual funds. The asset allocation methodology used in target date funds varies widely from fund family to fund family,

and as such, making comparisons between fund families target date series is a subjective exercise. The target date fund recommendations

we make are based on a qualitative review of many of the same criteria used for our active and passive reviews, but it also is influenced by

our researchers opinions on the fund family’s expenses, investment perspective, and glidepath methodology.

Core Fund List Review & Scorecard: Passively Managed Funds


65

Fund Name: Vanguard Growth Index Adm (Ticker: VIGAX) Manager: Vanguard

Asset Class: Large Growth Fund Type: Passive


Diagnostics Report

Vanguard Growth Index Admiral passes 8 of 9 of our investable fund criteria. The fund falls within an acceptable range for value added.

Fund DescriptionThe fund offers investors low-cost index exposure to stocks of large U.S. companies in the CRSP U.S. Large Cap Growth Index. The fund follows a buy-and-hold approach,investing in substantially all of the stocks represented in its benchmark.



Morningstar Rating



Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass



The fund’s 3-year sharpe ratio is0.66%, exceeding the large growthcategory average of 0.51%.

The fund’s 3-year alpha is -1.64%,above the large growth categoryaverage of -3.04%.

The fund’s 3-year standard deviationis 11.85%, below the large growthcategory average of 12.12%.

The fund’s 3-year r-squared is92.99%, above the large growthcategory average of 83.21%.

The fund’s turnover ratio is 9.00%,below the large growth categoryaverage of 61.7%.

The fund’s expense ratio is 0.08%,below the large growth categoryaverage of 1.16%.


66


Vanguard Growth Index Adm TickerVIGAX

Yield1.4%


Mstar CategoryLarge Growth

Benchmark 1: Russell 1000 Growth TR USDBenchmark 2: S&P 500 TR USD


„Morningstar Pillars




Œ „ ´ ‰ Á

Pillar Spectrum


10.0

15.0

20.0


Above AvgAverageQQQQAbove Avg


Growth of $10,000


* ( * * * & * ( & ( * Performance Quartile(within Category)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12-16 History29.77 33.23 20.30 27.32 31.60 31.79 36.64 47.87 53.71 54.77 57.31 NAV9.13 12.70 -38.22 36.42 17.12 1.87 17.01 32.40 13.63 3.30 6.12 Total Return %0.06 0.88 0.22 -0.79 0.41 -0.77 1.76 -1.09 0.58 -2.37 -0.95 +/- Bmark 1

-6.66 7.20 -1.22 9.95 2.06 -0.24 1.01 0.01 -0.06 1.91 -5.84 +/- Bmark 20.98 1.04 0.89 1.56 1.32 1.25 1.75 1.57 1.36 1.34 1.46 Income Return %8.15 11.66 -39.11 34.86 15.80 0.62 15.27 30.83 12.27 1.96 4.66 Capital Return %

30 52 32 39 33 15 30 63 14 53 28 Total Rtn % Rank Cat0.27 0.31 0.30 0.32 0.36 0.39 0.55 0.57 0.65 0.72 0.80 Income $0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Capital Gains $0.11 0.10 0.11 0.14 0.12 0.10 0.10 0.09 0.09 0.08 0.07 Expense Ratio %0.97 0.95 1.05 1.34 1.27 1.24 1.59 1.37 1.31 1.34 1.40 Income Ratio %

28 23 27 29 26 23 21 32 9 9 . Turnover Rate %2,505 2,203 1,296 1,641 4,712 4,819 5,774 7,903 14,907 16,777 18,617 Net Assets $mil


2012 15.26 -3.89 6.81 -1.11 17.012013 9.30 1.21 8.44 10.36 32.402014 0.78 6.16 1.05 5.10 13.632015 3.44 -0.24 -6.02 6.51 3.302016 0.34 1.02 5.14 -0.42 6.12


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo -0.42 -1.43 -4.24 53 9,9586 Mo 4.70 -0.94 -3.12 56 10,4701 Yr 6.12 -0.96 -5.84 28 10,6123 Yr Avg 7.60 -0.95 -1.28 19 12,4565 Yr Avg 14.05 -0.45 -0.61 28 19,29810 Yr Avg 8.14 -0.19 1.19 18 21,87115 Yr Avg 6.56 0.14 -0.13 27 25,937




Load-AdjReturn %




1 Yr 6.123 Yr 7.60 +Avg Avg QQQQ5 Yr 14.05 +Avg Avg QQQQ10 Yr 8.14 +Avg -Avg QQQQIncept 4.67




Portfolio Analysis 11-30-16Total Stocks: 322Share change since 10-31-16 Sector YTD Ret % % AssetsTApple Inc Technology 12.15 6.16TAmazon.com Inc Cnsmr Cyc 10.95 3.29TFacebook Inc A Technology 9.93 3.00TAlphabet Inc A Technology 1.86 2.49TAlphabet Inc C Technology — 2.41TComcast Corp Class A Comm Svcs 24.76 1.82TThe Home Depot Inc Cnsmr Cyc 3.47 1.74TCoca-Cola Co Cnsmr Def -0.23 1.71TVisa Inc Class A Finan Svcs 1.36 1.59TWalt Disney Co Cnsmr Cyc 0.60 1.56TPhilip Morris Internation Cnsmr Def 8.76 1.49TOracle Corp Technology 6.90 1.35TAmgen Inc Hlth Care -7.47 1.17T3M Co Industrl 21.49 1.13TMcDonald's Corp Cnsmr Cyc 6.09 1.11TMedtronic PLC Hlth Care -5.23 1.11TQualcomm Inc Technology 34.58 1.09TAbbVie Inc Hlth Care 9.55 1.08TMastercard Inc A Finan Svcs 6.83 1.08TGilead Sciences Inc Hlth Care -27.41 1.06


LargeM

idSm

all





Long-Term Erngs 11.29 0.97Book Value -1.28 -0.47Sales 8.75 1.24Cash Flow 11.93 1.09Historical Erngs 12.29 1.08

Profitability %


SectorWeightings

% ofStocks

RelBmark 1




Composition - Net


Morningstar's Take by Alex Bryan 08-18-16Vanguard Growth Index offers cheap exposure to large-and mid-cap growth stocks. Its sizable cost advantage,low turnover, and diversified portfolio support theMorningstar Analyst Rating of Silver.

The fund targets stocks representing the faster-growing half of the U.S. large-cap market and weightsthem by market capitalization. This weighting approachpromotes low turnover and skews the portfolio towardestablished firms, such as Alphabet GOOGL, StarbucksSBUX, and Gilead Sciences GILD. These giants tend togrow more slowly than their smaller counterparts, butthey are also less risky. The fund's largest holdings tendto be established firms with durable competitiveadvantages and strong profitability, and most haveattractive business prospects. However, there is alwaysa risk that they won't live up to the high expectationsembedded in their valuations. Like most of its peers, thefund tilts toward faster-growing sectors, like technologyand healthcare.

Because it casts a wide net, this portfolio includessome stocks with only modest growth traits. Theseholdings help reduce volatility and limit the fund's

exposure to more-expensive fare, though its growthorientation is similar to the category average. The fundhas less overlap with its value counterpart than rival large-cap value and growth funds based on the Russell 1000and S&P 500 indexes. Its benchmark, the CRSP U.S. LargeCap Index, applies more-generous buffer rules thanRussell and S&P to limit turnover. It also incorporatesreturn on assets into its selection criteria, which penalizesfirms for undisciplined growth.

While this fund often looks a lot like the categoryaverage, low fees give it a durable edge against its peers.Its Admiral share class charges a razor-thin 0.08%expense ratio, which is significantly lower than themedian large-cap no-load fee (0.84%). This costadvantage helped the fund land in the top quintile of thelarge-growth Morningstar Category over the past decade.As an added benefit, the fund has not made a taxablecapital gains distribution during that time.

Address: Vanguard Index Funds Minimum Purchase: $10000 Add: $1 IRA: —Valley Forge, PA 19482 Min Auto Inv Plan: — Add: —800-662-7447 Sales Fees: No-load

Web Address: www.vanguard.com Management Fee: 0.07%Inception: 11-13-00 Actual Fees: Mgt:0.07% Dist:—Advisor: Vanguard Group Inc Expense Projections: 3Yr:$26 5Yr:$45 10Yr:$103Subadvisor: None Income Distribution: Quarterly


ß® Mutual Funds A

67

Fund Name: Vanguard 500 Index Adm (Ticker: VFIAX) Manager: Vanguard

Asset Class: Large Blend Fund Type: Passive


Diagnostics Report

Vanguard 500 Index Admiral passes 8 of 9 of our investable fund criteria. The fund falls within an acceptable range for value added.

Fund DescriptionThe fund offers investors low-cost index exposure to stocks of large U.S. companies in the S&P 500 Index. The fund follows a buy-and-hold approach, investing insubstantially all of the stocks represented in its benchmark.



Morningstar Rating



Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s expense ratio is0.05%, below the large blendcategory average of 1.01%.




The fund’s 3-year sharpe ratio is0.83%, exceeding the large blendcategory average of 0.64%.

The fund’s 3-year alpha is -0.03%,above the large blend categoryaverage of -1.88%.

The fund’s 3-year standard deviationis 10.74%, below the large blendcategory average of 11.1%

The fund’s 3-year r-squared is100%, above the large blendcategory average of 93.2%.

The fund’s turnover ratio is3.00%, below the large blendcategory average of 62.4%.

68


Vanguard 500 Index Admiral TickerVFIAX

Yield2.0%


Mstar CategoryLarge Blend

Benchmark 1: Russell 1000 TR USDBenchmark 2: S&P 500 TR USD






Œ „ ´ ‰ Á

Pillar Spectrum


10.0

15.0

20.0




Growth of $10,000


& * * ( * & * * & & * Performance Quartile(within Category)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12-16 History130.59 135.15 83.09 102.67 115.83 115.80 131.37 170.36 189.89 188.48 206.57 NAV15.75 5.47 -36.97 26.62 15.05 2.08 15.96 32.33 13.64 1.36 11.93 Total Return %0.29 -0.30 0.63 -1.81 -1.05 0.58 -0.46 -0.78 0.40 0.45 -0.13 +/- Bmark 1

-0.05 -0.02 0.03 0.16 -0.01 -0.03 -0.04 -0.06 -0.05 -0.02 -0.03 +/- Bmark 21.97 2.00 1.94 2.68 2.05 2.08 2.49 2.40 2.08 2.10 2.23 Income Return %

13.77 3.47 -38.90 23.94 13.00 0.01 13.48 29.93 11.56 -0.74 9.70 Capital Return %21 49 37 52 29 17 35 42 18 20 27 Total Rtn % Rank Cat




2012 12.57 -2.75 6.34 -0.39 15.962013 10.60 2.90 5.23 10.50 32.332014 1.79 5.22 1.12 4.92 13.642015 0.94 0.28 -6.45 7.04 1.362016 1.34 2.45 3.84 3.82 11.93


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 3.82 -0.01 0.00 44 10,3826 Mo 7.81 -0.20 -0.01 46 10,7811 Yr 11.93 -0.12 -0.03 27 11,1933 Yr Avg 8.84 0.25 -0.03 6 12,8935 Yr Avg 14.62 -0.07 -0.04 15 19,78510 Yr Avg 6.94 -0.14 -0.01 21 19,56115 Yr Avg 6.68 -0.32 -0.02 26 26,360




Load-AdjReturn %




1 Yr 11.933 Yr 8.84 High Avg QQQQQ5 Yr 14.62 +Avg -Avg QQQQ10 Yr 6.94 +Avg Avg QQQQIncept 5.22




Portfolio Analysis 11-30-16Total Stocks: 510Share change since 10-31-16 Sector YTD Ret % % AssetsTApple Inc Technology 12.15 3.12TMicrosoft Corp Technology 14.65 2.46TExxon Mobil Corp Energy 19.62 1.90TJohnson & Johnson Hlth Care 15.23 1.59TAmazon.com Inc Cnsmr Cyc 10.95 1.55TJPMorgan Chase & Co Finan Svcs 33.47 1.52TBerkshire Hathaway Inc B Finan Svcs 23.43 1.48TFacebook Inc A Technology 9.93 1.44TGeneral Electric Co Industrl 4.43 1.44TWells Fargo & Co Finan Svcs 4.17 1.26TAT&T Inc Comm Svcs 29.18 1.24TAlphabet Inc A Technology 1.86 1.20TAlphabet Inc C Technology — 1.17TProcter & Gamble Co Cnsmr Def 9.24 1.15TBank of America Corporati Finan Svcs 32.80 1.13TChevron Corp Energy 35.60 1.10TVerizon Communications In Comm Svcs 20.41 1.07TPfizer Inc Hlth Care 4.34 1.02TMerck & Co Inc Hlth Care 14.96 0.89TComcast Corp Class A Comm Svcs 24.76 0.87


LargeM

idSm

all





Long-Term Erngs 8.60 0.97Book Value 0.50 0.34Sales 1.38 0.76Cash Flow 1.28 0.42Historical Erngs 5.52 0.89

Profitability %


SectorWeightings

% ofStocks

RelBmark 1




Composition - Net


Morningstar's Take by Adam McCullough 11-23-16Vanguard 500 Index offers investors diversified exposureto U.S. large-cap stocks. A low fee and a soundlyconstructed and reasonably representative portfolio leavethe fund well-positioned to continue its long streak ofproducing superior risk-adjusted returns relative to itspeers over the long haul and underpin its MorningstarAnalyst Rating of Gold.

Broad diversification is an intrinsic advantage offund’s replication of the market-cap-weighted S&P 500,which covers approximately 80% of the investable marketcapitalization of the U.S. equity market. While mostindexes follow mechanical, rules-based approaches, theS&P 500 is managed by committee. Yet, this index hasperformed similarly to other popular large-cap indexes,such as the Russell 1000. Its market-cap-weightingapproach can be beneficial in bull markets that arecharacterized by large-cap leadership, such as the post-financial-crisis charge in U.S. stocks. That said, it can alsolead to significant sector- and single-securityconcentration, as witnessed at the height of thetechnology bubble. So market-cap-weighted indexes’greatest strength is arguably also their Achilles’ heel.

Low turnover is another key advantage of the fund’sbroad market-cap-weighted approach. Lower turnoverequates to lower costs and a lesser likelihood of taxablecapital gains distributions. The average annual turnoverof the fund was 6% during the past five years. Thiscompares with a median figure of 55% for its categorypeers.

The fund’s sector weights are similar to its large-capblend peers. But its holdings' average marketcapitalization is usually greater than the categoryaverage, partially because of its weighting approach,which pulls the portfolio toward giant- and large-capstocks.

During the 15-year period ended October 2016, thefund returned 6.86% per year, outstripping the U.S. large-blend Morningstar Category average by 0.39 percentagepoints per year. Much of this relative outperformance canbe attributed to the fund’s sizable fee advantage. At0.05%, the fund’s annual levy is a tiny fraction of the0.79% median fee charged by its category peers.




ß® Mutual Funds A

69

Fund Name: Vanguard Value Index Adm (Ticker: VVIAX) Manager: Vanguard

Asset Class: Large Value Fund Type: Passive


Diagnostics Report

Vanguard Value Index Adm passes 9 of 9 of our investable fund criteria.

Fund DescriptionThe fund offers investors low-cost index exposure to stocks of large U.S. companies in the CRSP U.S. Large Cap Value Index. The fund follows a buy-and-hold approach,investing in substantially all of the stocks represented in its benchmark.



Morningstar Rating



Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass






The fund’s 3-year alpha is 0.97%,above the large value categoryaverage of -1.71%.


The fund’s 3-year r-squared is94.28%, above the large valuecategory average of 87.91%.


70


Vanguard Value Index Adm TickerVVIAX

Yield2.4%


Mstar CategoryLarge Value







Œ „ ´ ‰ Á

Pillar Spectrum


10.0

15.0

20.0




Growth of $10,000


& ( * ( * * * * & & * Performance Quartile(within Category)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12-16 History26.58 25.94 16.08 18.63 20.79 20.47 22.93 29.78 32.94 31.82 36.23 NAV22.27 0.18 -35.90 19.72 14.45 1.14 15.18 33.05 13.18 -0.86 16.86 Total Return %0.03 0.36 0.95 0.03 -1.06 0.75 -2.33 0.52 -0.27 2.97 -0.48 +/- Bmark 16.48 -5.31 1.09 -6.75 -0.62 -0.97 -0.83 0.66 -0.51 -2.24 4.90 +/- Bmark 22.79 2.70 2.64 3.33 2.66 2.65 3.10 2.90 2.48 2.54 2.82 Income Return %

19.48 -2.51 -38.55 16.38 11.79 -1.51 12.08 30.15 10.71 -3.40 14.05 Capital Return %6 62 41 67 34 32 45 34 12 15 27 Total Rtn % Rank Cat




2012 10.57 -2.42 5.83 0.87 15.182013 12.22 3.88 3.60 10.16 33.052014 2.82 4.29 0.81 4.71 13.182015 -0.57 0.51 -7.28 6.99 -0.862016 1.63 3.80 3.04 7.51 16.86


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 7.51 0.83 3.68 28 10,7516 Mo 10.77 0.38 2.95 46 11,0771 Yr 16.86 -0.48 4.90 27 11,6863 Yr Avg 9.45 0.86 0.58 6 13,1135 Yr Avg 14.98 0.18 0.32 9 20,09410 Yr Avg 5.98 0.26 -0.96 35 17,88115 Yr Avg 7.19 -0.22 0.50 27 28,335




Load-AdjReturn %




1 Yr 16.863 Yr 9.45 High -Avg QQQQQ5 Yr 14.98 +Avg -Avg QQQQQ10 Yr 5.98 Avg Avg QQQIncept 6.04




Portfolio Analysis 11-30-16Total Stocks: 322Share change since 10-31-16 Sector YTD Ret % % AssetsTMicrosoft Corp Technology 14.65 4.24TExxon Mobil Corp Energy 19.62 3.44TJohnson & Johnson Hlth Care 15.23 2.89TBerkshire Hathaway Inc B Finan Svcs 23.43 2.88TJPMorgan Chase & Co Finan Svcs 33.47 2.75TGeneral Electric Co Industrl 4.43 2.62TWells Fargo & Co Finan Svcs 4.17 2.28TAT&T Inc Comm Svcs 29.18 2.26TBank of America Corporati Finan Svcs 32.80 2.05TProcter & Gamble Co Cnsmr Def 9.24 2.01TChevron Corp Energy 35.60 2.00TVerizon Communications In Comm Svcs 20.41 1.93TPfizer Inc Hlth Care 4.34 1.85TMerck & Co Inc Hlth Care 14.96 1.61TIntel Corp Technology 8.30 1.56TCitigroup Inc Finan Svcs 15.65 1.48TCisco Systems Inc Technology 14.93 1.43TUnitedHealth Group Inc Hlth Care 38.06 1.43TPepsiCo Inc Cnsmr Def 7.68 1.37TInternational Business Ma Technology 24.61 1.33


LargeM

idSm

all





Long-Term Erngs 7.12 0.92Book Value 1.89 1.44Sales -0.90 0.60Cash Flow -3.63 1.54Historical Erngs 2.02 0.53

Profitability %


SectorWeightings

% ofStocks

RelBmark 1




Composition - Net


Morningstar's Take by Alex Bryan 08-18-16Vanguard Value Index offers low-cost exposure to large-cap value stocks. Its sizable cost advantage, low turnover,and well-diversified portfolio support its MorningstarAnalyst Rating of Silver.

The fund targets stocks representing the cheaper andslower-growing half of the U.S. large-cap market andweights them by market capitalization. This weightingapproach promotes low turnover and skews the portfoliotoward the largest value stocks, giving the fund a largermarket-cap orientation than most of its peers. But thebiggest stocks are not necessarily the cheapest. Market-cap-weighting can actually reduce the portfolio'sexposure to stocks as they become cheaper, as thistypically accompanies a decline in market capitalization.The portfolio's largest holdings include household namessuch as Exxon Mobil XOM, Microsoft MSFT, and Johnson& Johnson JNJ. These large-cap stocks may offer lowerreturn potential than smaller stocks, but they also tendto be less risky.

The fund's holdings tend to have less attractivebusiness prospects than their growth counterparts, sothey are not necessarily bargains. But they could become

undervalued if investors extrapolate lackluster pastgrowth too far into the future.

Because the fund covers half the large-cap market,it includes some stocks with only modest valuecharacteristics, which helps reduce volatility. Yet, itsvalue orientation is similar to the large-value MorningstarCategory average, as are most of its sector weightings.The fund has less overlap with its growth counterpart thanrival value and growth funds based on the Russell 1000and S&P 500 indexes. CRSP also applies more generousbuffering rules to limit turnover and mitigate transactioncosts.

Low fees give the fund a durable edge against itspeers. Its Admiral share class charges a low 0.08%expense ratio, which is considerably less than the medianlarge-cap no-load fee (0.84%). This cost advantagehelped the fund outpace the large-value category averageby about 98 basis points annually during the past decade.




ß® Mutual Funds A

71

Fund Name: Vanguard Mid Cap Index Adm (Ticker: VIMAX) Manager: Vanguard

Asset Class: Mid-Cap Blend Fund Type: Passive


Diagnostics Report

Vanguard Mid Cap Index Adm passes 8 of 9 of our investable fund criteria. The fund falls within an acceptable range for value added.

Fund DescriptionThe fund offers investors low-cost index exposure to stocks of mid-size U.S. companies in the CRSP U.S. Mid Cap Index. The fund follows a buy-and-hold approach,investing in substantially all of the stocks represented in its benchmark.



The fund’s expense ratio is 0.08%,below the mid-cap blend categoryaverage of 1.12%.


Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s 3-year sharpe ratio is0.67%, exceeding the mid-capblend category average of 0.52%.

The fund’s 3-year alpha is -1.30%,above the mid-cap blend categoryaverage of -2.75%.

The fund’s 3-year standard deviationis 11.79%, below the mid-cap blendcategory average of 12.43%.

The fund’s 3-year r-squared is88.77%, above the mid-cap blendcategory average of 77.4%.

The fund’s turnover ratio is15%, below the mid-cap blendcategory average of 70.42%.

72


Vanguard Mid Cap Index Adm TickerVIMAX

Yield1.4%


Mstar CategoryMid-Cap Blend

Benchmark 1: Russell Mid Cap TR USDBenchmark 2: S&P 500 TR USD






Œ „ ´ ‰ Á

Pillar Spectrum


10.0

15.0

20.0

25.0


AverageAverageQQQNeutral


Growth of $10,000


* * ( & * * ( * & & ( Performance Quartile(within Category)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12-16 History89.73 93.93 53.49 74.23 92.17 89.15 101.97 136.19 152.97 148.72 162.94 NAV13.69 6.17 -41.78 40.48 25.59 -1.97 15.99 35.15 13.76 -1.34 11.22 Total Return %-1.57 0.57 -0.32 0.00 0.12 -0.42 -1.28 0.39 0.55 1.10 -2.58 +/- Bmark 1-2.10 0.67 -4.78 14.02 10.53 -4.08 -0.01 2.76 0.08 -2.72 -0.74 +/- Bmark 21.50 1.47 1.21 1.68 1.42 1.31 1.61 1.57 1.44 1.43 1.60 Income Return %

12.19 4.70 -42.99 38.80 24.17 -3.28 14.38 33.58 12.32 -2.77 9.62 Capital Return %45 44 69 24 28 33 55 41 5 18 73 Total Rtn % Rank Cat




2012 13.41 -5.46 5.21 2.83 15.992013 12.88 2.37 7.67 8.62 35.152014 3.28 4.50 -1.16 6.64 13.762015 4.28 -1.18 -7.45 3.44 -1.342016 1.17 2.33 5.18 2.14 11.22


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 2.14 -1.07 -1.68 90 10,2146 Mo 7.44 -0.43 -0.39 79 10,7441 Yr 11.22 -2.58 -0.74 73 11,1223 Yr Avg 7.68 -0.25 -1.20 31 12,4845 Yr Avg 14.37 -0.35 -0.29 38 19,57010 Yr Avg 7.66 -0.20 0.72 37 20,92215 Yr Avg 9.21 -0.30 2.51 29 37,471




Load-AdjReturn %




1 Yr 11.223 Yr 7.68 Avg -Avg QQQ5 Yr 14.37 Avg -Avg QQQ10 Yr 7.66 Avg Avg QQQIncept 9.68




Portfolio Analysis 11-30-16Total Stocks: 344Share change since 10-31-16 Sector YTD Ret % % AssetsTRoss Stores Inc Cnsmr Cyc 22.91 0.82TEquinix Inc Real Est 20.51 0.73TNVIDIA Corp Technology 225.32 0.71TFiserv Inc Industrl 16.20 0.70TElectronic Arts Inc Technology 14.61 0.69TNewell Brands Inc Cnsmr Def 3.02 0.69TAmphenol Corp Class A Technology 29.77 0.64TM&T Bank Corp Finan Svcs 31.40 0.62TConcho Resources Inc Energy 42.80 0.61TDollar Tree Inc Cnsmr Def -0.05 0.60TKeyCorp Finan Svcs 41.02 0.57TFreeport-McMoRan Inc Basic Mat 94.83 0.56TRoper Technologies Inc Industrl -2.90 0.56TThe Hartford Financial Se Finan Svcs 11.62 0.55TWEC Energy Group Inc Utilities 18.16 0.54TWestern Digital Corp Technology 16.49 0.54TCitizens Financial Group Finan Svcs 37.80 0.53TEdwards Lifesciences Corp Hlth Care 18.64 0.53TLam Research Corp Technology 34.83 0.52TMolson Coors Brewing Co B Cnsmr Def 5.36 0.52


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% ofStocks

RelBmark 1




Composition - Net


Morningstar's Take by Adam McCullough 11-23-16Vanguard Mid-Cap Index offers diversified exposure toU.S. mid-cap stocks. A low fee and a soundlyconstructed, reasonably representative portfolio leavethis fund well positioned to continue its long streak ofproducing superior risk-adjusted returns relative to peers,and underpin its Morningstar Analyst Rating of Gold.

This well-diversified market-cap-weighted fund fullyreplicates the CRSP U.S. Mid-cap Index which targetsrepresenting the largest 70th to 85th percentile of theU.S. Market. The fund switched to this index from theMSCI U.S. Mid-cap 450 Index to reduce costs in early2013. After the index change, the fund’s holding countdropped to about 350 companies from 450, but it stilleffectively diversifies firm-specific risk. Its top-10holdings only represent about 7.5% of the portfolio, halfof the corresponding figure for the Morningstar Categoryaverage. The index swap also decreased the fund’s small-and micro-cap stock holdings and boosted its averagemarket capitalization, which is now 35% greater than thecategory average. And because larger stocks tend to bemore profitable than their smaller counterparts, it isn’tsurprising that the fund’s holdings tend to generate higher

average returns on equity than the mid-cap blendcategory average.

Low turnover is a key advantage of the fund’s broadmarket-cap-weighted approach because it equates tolower transaction costs and a lesser likelihood of taxablecapital gains distributions. And the fund’s index uses well-constructed buffering rules that further reduce turnover.Prior to the index swap, the fund averaged 20% annualturnover from 2006 to 2012. After the change, its turnoverdropped to just 13%. And the mid-cap blend categoryaveraged 75% annual turnover over the past decade.

During the 10-year period ended October 2016, thefund returned 7.5% per year, outstripping the U.S. mid-blend category average by 1.2 percentage points peryear. Much of this relative outperformance can beattributed to the fund’s sizable fee advantage. At only0.08%, the fund’s annual levy is a tiny fraction of the0.97% median fee charged by its category peers.




ß® Mutual Funds A

73

Fund Name: Vanguard Small Cap Growth Index Adm (Ticker: VSGAX) Manager: Vanguard

Asset Class: Small Growth Fund Type: Passive


Diagnostics Report

Vanguard Small Cap Growth Index Adm passes 7 of 9 of our investable fund criteria. The fund falls within an acceptable range for category rank. We continue to monitor the

fund’s value added.

Fund DescriptionThe fund offers investors low-cost index exposure to stocks of small U.S. companies in the CRSP U.S. Small Cap Growth Index. The fund follows a buy-and-hold approach,investing in substantially all of the stocks represented in its benchmark.



The fund’s expense ratio is 0.08%,below the small growth categoryaverage of 1.31%.


Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s 3-year sharpe ratio is0.33%, exceeding the small growthcategory average of 0.30%.

The fund’s 3-year alpha is -5.07%,above the small growth categoryaverage of -5.60%.

The fund’s 3-year standard deviationis 14.22%, below the small growthcategory average of 15.96%.

The fund’s 3-year r-squared is68.34%, above the small growthcategory average of 59.50%.

The fund’s turnover ratio is23%, below the small growthcategory average of 75.97%.

74


Vanguard Small Cap Growth Index Admiral TickerVSGAX

Yield1.1%


Mstar CategorySmall Growth

Benchmark 1: Russell 2000 Growth TR USDBenchmark 2: S&P 500 TR USD






Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.0

14.0

16.0

18.020.022.0


AverageBelow AvgQQQNeutral


Growth of $10,000


& ( * ( * Performance Quartile(within Category)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12-16 History. . . . . 26.88 31.30 42.98 44.26 42.73 46.79 NAV. . . . . . 17.66 38.22 4.02 -2.52 10.73 Total Return %. . . . . . 3.07 -5.08 -1.59 -1.13 -0.59 +/- Bmark 1. . . . . . 1.66 5.83 -9.67 -3.90 -1.23 +/- Bmark 2. . . . . . 1.21 0.89 1.04 0.94 1.19 Income Return %. . . . . . 16.45 37.33 2.98 -3.46 9.55 Capital Return %. . . . . . 11 65 36 52 48 Total Rtn % Rank Cat. . . . . 0.11 0.33 0.28 0.45 0.42 0.51 Income $. . . . . . 0.00 0.00 0.00 0.00 0.00 Capital Gains $. . . . . 0.10 0.10 0.09 0.09 0.08 0.08 Expense Ratio %. . . . . 0.51 1.11 0.78 1.01 0.94 1.09 Income Ratio %. . . . . 40 37 50 26 23 . Turnover Rate %. . . . . 1,781 2,539 4,881 5,434 5,933 6,648 Net Assets $mil


2012 13.81 -3.79 5.44 1.91 17.662013 12.38 2.99 11.07 7.53 38.222014 1.59 2.57 -5.54 5.68 4.022015 6.30 0.30 -11.69 3.53 -2.522016 -1.93 4.39 6.66 1.42 10.73


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 1.42 -2.15 -2.41 70 10,1426 Mo 8.17 -4.95 0.34 83 10,8171 Yr 10.73 -0.59 -1.23 48 11,0733 Yr Avg 3.94 -1.11 -4.94 47 11,2285 Yr Avg 12.80 -0.94 -1.86 39 18,26110 Yr Avg — — — — —15 Yr Avg — — — — —

Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat3 Yr (estimated) 3.52 28 0.40 125 Yr (estimated) 12.42 20 0.33 1110 Yr (estimated) — — — —



Load-AdjReturn %




1 Yr 10.733 Yr 3.94 Avg -Avg QQQ5 Yr 12.80 Avg -Avg QQQ10 Yr — — — —Incept 13.77




Portfolio Analysis 11-30-16Total Stocks: 684Share change since 10-31-16 Sector YTD Ret % % AssetsTCMT Market Liquidity Rate — — 1.91TDiamondback Energy Inc Energy 51.06 0.62TSVB Financial Group Finan Svcs 44.37 0.61TDomino's Pizza Inc Cnsmr Cyc 44.50 0.60THD Supply Holdings Inc Industrl 41.56 0.58TThe Middleby Corp Industrl 19.41 0.58TCadence Design Systems In Technology 21.19 0.57TSignature Bank Finan Svcs -2.07 0.56TA.O. Smith Corp Industrl 24.87 0.53TRegency Centers Corp Real Est 4.15 0.52TAlign Technology Inc Hlth Care 45.98 0.50TJack Henry & Associates I Industrl 15.17 0.50TKilroy Realty Corp Real Est 21.04 0.49TSeattle Genetics Inc Hlth Care 17.58 0.47TBurlington Stores Inc Cnsmr Def — 0.46TCoStar Group Inc Real Est -8.81 0.46TAmerican Campus Communiti Real Est 24.41 0.45TLennox International Inc Industrl 23.96 0.45TMednax Inc Hlth Care -6.98 0.45TOld Dominion Freight Line Industrl 45.23 0.45


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RelBmark 1




Composition - Net


Morningstar's Take by Alex Bryan 06-17-16Vanguard Small Cap Growth Index is one of the cheapestfunds of its kind. Its cost advantage, low turnover, andbroad market-cap-weighted portfolio support itsMorningstar Analyst Rating of Silver.

The fund invests in the faster-growing and moreexpensive half of the U.S. small-cap market and weightsits holdings by market capitalization. While thesecompanies tend to grow more quickly than their large-cap counterparts, they also carry greater risk. Most of thefund's holdings lack meaningful competitive advantagesand may not hold up as well as large caps during marketdownturns. Therefore, this fund is best suited as asatellite holding for investors with a high risk tolerance.Growth is attractive, but it must exceed the market'sexpectations to translate into superior returns. There isalways a risk that investors' expectations for the fund'sholdings may be overly optimistic.

Because this fund covers approximately half thesmall-cap market, it includes some stocks with onlymodest growth characteristics. These holdings help limitthe fund's exposure to more expensive, and potentiallyriskier, stocks. The fund has less overlap with its value

counterpart (Vanguard Small Cap Value Index VSIAX)than do rival value and growth funds based on the Russell2000 and S&P SmallCap 600 indexes. Many of its sectorweightings are similar to the small-growth MorningstarCategory average, but it has much greater exposure tothe real estate sector.

Low fees give the fund a sustainable edge over thelong run. Over the past decade, the fund’s Investor shareclass landed in the top quintile of its category. The Admiralshare class enjoys an even greater cost advantage. Its0.09% fee is only a fraction of the median levy for small-cap no-load funds (1.16%).

In 2013, Vanguard transitioned from the MSCI USSmall Cap Growth Index to the CRSP US Small CapGrowth Index, citing potential cost savings. The CRSPindex has generous buffer rules to mitigate turnover andtransaction costs. Tax efficiency adds to the fund'sappeal. It hasn't distributed a capital gain in the pastdecade.




ß® Mutual Funds A

75

Fund Name: Vanguard Small Cap Index Adm (Ticker: VSMAX) Manager: Vanguard

Asset Class: Small Blend Fund Type: Passive


Diagnostics Report

Vanguard Small Cap Index Adm passes 7 of 9 of our investable fund criteria. The fund falls within an acceptable range for category rank. We continue to monitor the fund’s

value added.

Fund DescriptionThe fund offers investors low-cost index exposure to stocks of small U.S. companies in the CRSP U.S. Small Cap Index. The fund follows a buy-and-hold approach, investingin substantially all of the stocks represented in its benchmark.



The fund’s expense ratio is 0.08%,below the small blend categoryaverage of 1.21%.

The fund has $69.4 Billion inassets under management.

Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s 3-year sharpe ratio is0.55%, exceeding the small blendcategory average of 0.45%.

The fund’s 3-year alpha is -2.34%,above the small blend categoryaverage of -3.32%.

The fund’s 3-year standard deviationis 13.85%, below the small blendcategory average of 15.02%.

The fund’s 3-year r-squared is74.15%, above the small blendcategory average of 63.95%.

The fund’s turnover ratio is11%, below the small blendcategory average of 65.06%.

76


Vanguard Small Cap Index Adm TickerVSMAX

Yield1.5%


Mstar CategorySmall Blend

Benchmark 1: Russell 2000 TR USDBenchmark 2: S&P 500 TR USD






Œ „ ´ ‰ Á

Pillar Spectrum


10.0

15.0

20.0

25.0




Growth of $10,000


* * ( & & * & * & * ( Performance Quartile(within Category)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12-16 History32.64 32.59 20.40 27.50 34.78 33.39 38.76 52.72 55.87 53.05 61.77 NAV15.78 1.24 -36.00 36.33 27.89 -2.69 18.24 37.81 7.50 -3.64 18.30 Total Return %-2.58 2.81 -2.22 9.16 1.03 1.48 1.89 -1.01 2.61 0.77 -3.00 +/- Bmark 1-0.01 -4.25 1.00 9.86 12.82 -4.80 2.24 5.43 -6.19 -5.03 6.34 +/- Bmark 21.37 1.38 1.32 1.51 1.42 1.31 2.15 1.78 1.52 1.41 1.75 Income Return %

14.41 -0.14 -37.33 34.82 26.47 -4.00 16.09 36.04 5.98 -5.05 16.55 Capital Return %41 29 52 25 23 42 21 45 13 34 71 Total Rtn % Rank Cat




2012 12.96 -3.45 5.47 2.79 18.242013 12.84 2.77 9.19 8.84 37.812014 2.59 3.77 -5.49 6.84 7.502015 4.81 -0.56 -10.33 3.11 -3.642016 1.00 3.98 6.17 6.10 18.30


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 6.10 -2.73 2.28 93 10,6106 Mo 12.65 -6.03 4.83 90 11,2651 Yr 18.30 -3.01 6.34 71 11,8303 Yr Avg 7.01 0.27 -1.86 39 12,2555 Yr Avg 14.83 0.37 0.17 33 19,96910 Yr Avg 8.18 1.11 1.23 19 21,95115 Yr Avg 9.36 0.87 2.66 28 38,259




Load-AdjReturn %




1 Yr 18.303 Yr 7.01 Avg -Avg QQQ5 Yr 14.83 Avg -Avg QQQQ10 Yr 8.18 +Avg Avg QQQQIncept 9.00




Portfolio Analysis 11-30-16Total Stocks: 1438Share change since 10-31-16 Sector YTD Ret % % AssetsTArthur J. Gallagher & Co Finan Svcs 30.63 0.29TNewfield Exploration Co Energy 24.39 0.29TCDW Corp Technology 25.05 0.27TDiamondback Energy Inc Energy 51.06 0.27THuntington Ingalls Indust Industrl 46.86 0.27TSteel Dynamics Inc Basic Mat 102.24 0.27TSVB Financial Group Finan Svcs 44.37 0.27TTarga Resources Corp Energy 120.66 0.27TDomino's Pizza Inc Cnsmr Cyc 44.50 0.26THD Supply Holdings Inc Industrl 41.56 0.26TPackaging Corp of America Cnsmr Cyc 38.27 0.26TThe Middleby Corp Industrl 19.41 0.26TWestar Energy Inc Utilities 36.45 0.26TBroadridge Financial Solu Industrl 25.74 0.25TCadence Design Systems In Technology 21.19 0.25TSignature Bank Finan Svcs -2.07 0.25TUGI Corp Utilities 39.28 0.25TAtmos Energy Corp Utilities 20.34 0.24TCarlisle Companies Inc Cnsmr Cyc 25.82 0.24TSpirit AeroSystems Holdin Industrl 16.74 0.24


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RelBmark 1




Composition - Net


Morningstar's Take by Adam McCullough 11-28-16Vanguard Small Cap Index is a compelling market-cap-weighted fund that balances accurately representing theU.S. small-cap stock market with keeping turnover low.Its well-diversified portfolio, efficient index construction,and low expense ratio should provide an edge over itspeers. It earns a Morningstar Analyst Rating of Gold.

The fund tracks the CRSP U.S. Small Cap Index andoffers well-diversified exposure to small-cap U.S. stocks.The index targets U.S. stocks smaller than the largest85% by market capitalization and larger than the smallest2%. This brings in more than 1,000 holdings, most ofwhich have not yet established durable competitiveadvantages and tend to be riskier than larger stocks. Butthe fund effectively diversifies firm-specific risk. Its top10 holdings represent about 3% of assets, compared withthe small-blend Morningstar Category average of 22%.

The fund has two primary advantages that reduce itstransaction costs. It invests in larger stocks than most ofits category peers, which tend to be more liquid and lessexpensive to trade than their smaller counterparts. Andits index employs buffer rules that wait to move a stockuntil it is squarely in an adjacent size segment and then

only moves half the position at once. This reducesunnecessary trades and the market impact cost oftrading. The fund’s average five-year turnover of 16% isa quarter of the small-cap blend category average.

In early 2013, the fund changed its underlying indexto the CRSP U.S. Small Cap Index from the MSCI U.S.Small Cap Index to reduce expenses. The change nearlydoubled its holdings’ average market capitalization.Despite the change, the fund’s low fee and thoughtfulindex construction (current and prior) has paid off. Overthe trailing 10 years through September 2016, it bestedthe category average by 1.6 percentage points annuallywith similar volatility. More favorable stock exposure inthe energy, telecom, and financial sectors contributed themost to this outperformance.




ß® Mutual Funds A

77

Fund Name: Vanguard Small Cap Value Index Adm (Ticker: VSIAX) Manager: Vanguard

Asset Class: Small Value Fund Type: Passive


Diagnostics Report

Vanguard Small Cap Value Index passes 8 of 9 of our investable fund criteria. The fund falls within an acceptable range for value added.

Fund DescriptionThe fund offers investors low-cost index exposure to stocks of small U.S. companies in the CRSP U.S. Small Cap Value Index. The fund follows a buy-and-hold approach,investing in substantially all of the stocks represented in its benchmark.



The fund’s expense ratio is 0.08%,below the small value categoryaverage of 1.31%.


Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s 3-year sharpe ratio is0.71%, exceeding the small valuecategory average of 0.50%.

The fund’s 3-year alpha is -0.06%,above the small value categoryaverage of -2.33%.

The fund’s 3-year standard deviationis 14.01%, below the small valuecategory average of 15.14%.

The fund’s 3-year r-squared is74.08%, above the small valuecategory average of 60.49%.

The fund’s turnover ratio is16%, below the small valuecategory average of 78.07%.

78


Vanguard Small Cap Value Index Admiral TickerVSIAX

Yield1.8%


Mstar CategorySmall Value







Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.5

15.0

17.5

20.022.525.0


Above AvgBelow AvgQQQQQHighest


Growth of $10,000


* * & * ( Performance Quartile(within Category)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12-16 History. . . . . 26.96 31.20 41.82 45.42 42.46 51.97 NAV. . . . . . 18.77 36.58 10.55 -4.65 24.78 Total Return %. . . . . . 0.72 2.06 6.33 2.82 -6.96 +/- Bmark 1. . . . . . 2.76 4.19 -3.14 -6.04 12.82 +/- Bmark 2. . . . . . 3.04 2.51 1.92 1.87 2.18 Income Return %. . . . . . 15.73 34.07 8.63 -6.52 22.60 Capital Return %. . . . . . 26 44 2 36 61 Total Rtn % Rank Cat. . . . . 0.56 0.82 0.78 0.80 0.84 0.92 Income $. . . . . . 0.00 0.00 0.00 0.00 0.00 Capital Gains $. . . . . 0.10 0.10 0.09 0.09 0.08 0.08 Expense Ratio %. . . . . 2.04 2.80 2.18 1.98 1.90 2.04 Income Ratio %. . . . . 30 25 47 12 16 . Turnover Rate %. . . . . 1,941 2,563 4,371 5,774 6,467 9,469 Net Assets $mil


2012 12.14 -3.14 5.53 3.61 18.772013 13.30 1.87 7.64 9.94 36.582014 3.45 4.76 -5.43 7.87 10.552015 3.51 -1.36 -9.12 2.76 -4.652016 3.49 3.65 5.76 9.98 24.78


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 9.98 -4.09 6.16 82 10,9986 Mo 16.32 -7.87 8.50 87 11,6321 Yr 24.78 -6.96 12.82 61 12,4783 Yr Avg 9.56 1.25 0.69 12 13,1525 Yr Avg 16.36 1.29 1.70 10 21,33410 Yr Avg — — — — —15 Yr Avg — — — — —




Load-AdjReturn %




1 Yr 24.783 Yr 9.56 +Avg -Avg QQQQ5 Yr 16.36 +Avg -Avg QQQQQ10 Yr — — — —Incept 17.61




Portfolio Analysis 11-30-16Total Stocks: 856Share change since 10-31-16 Sector YTD Ret % % AssetsYCMT Market Liquidity Rate — — 1.00TArthur J. Gallagher & Co Finan Svcs 30.63 0.52TCDW Corp Technology 25.05 0.49THuntington Ingalls Indust Industrl 46.86 0.49TTarga Resources Corp Energy 120.66 0.49TSteel Dynamics Inc Basic Mat 102.24 0.48TWestar Energy Inc Utilities 36.45 0.47TBroadridge Financial Solu Industrl 25.74 0.45TUGI Corp Utilities 39.28 0.45TSpirit AeroSystems Holdin Industrl 16.74 0.44TAtmos Energy Corp Utilities 20.34 0.43TCarlisle Companies Inc Cnsmr Cyc 25.82 0.42TThe Valspar Corp Basic Mat 26.55 0.42TIDEX Corp Industrl 19.31 0.41TRPM International Inc Basic Mat 24.73 0.41TCommScope Holding Co Inc Technology — 0.40TEast West Bancorp Inc Finan Svcs 24.23 0.40TLeidos Holdings Inc Technology 17.42 0.40TApartment Investment & Ma Real Est 16.84 0.38TJetBlue Airways Corp Industrl -1.02 0.38


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Long-Term Erngs 9.02 0.86Book Value 0.11 0.05Sales -0.87 7.22Cash Flow 0.15 0.04Historical Erngs -1.25 -0.40

Profitability %


SectorWeightings

% ofStocks

RelBmark 1




Composition - Net


Morningstar's Take by Alex Bryan 06-17-16Low fees are Vanguard Small Cap Value Index’s greateststrength. Its sizable cost advantage, low turnover, andbroad market-cap-weighted portfolio support itsMorningstar Analyst Rating of Silver.

The fund targets stocks representing half of the U.S.small-cap market with the lowest valuation ratios andgrowth rates. It weights these holdings by marketcapitalization, reflecting the composition of the market.Most of the 800-plus stocks that make the cut havelimited analyst coverage and brand recognition. They alsotend to be more volatile than their larger counterparts,but could compensate investors with higher returns overthe long term. Many of the fund’s sector weightings aresimilar to the small-value Morningstar Category average,but it has greater exposure to real estate and utilitiesstocks, and less exposure to the technology sector. Thefund does not constrain its sector weightings.

Because it casts a wide net, this portfolio includessome stocks with only modest value characteristics.These holdings should help reduce the portfolio’sexposure to distressed stocks and volatility. The fund hasless overlap with its growth counterpart, Vanguard Small

Growth Index VSGAX, than do rival value and growthfunds based on the Russell 2000 and S&P Small-Cap 600indexes. Its benchmark applies generous buffering rulesto mitigate turnover, which lets some stocks remain inthe portfolio after they drift outside the targeted valuezone. Market-cap weighting also helps keep turnover andtransaction costs low. Low fees give the fund asustainable edge against its peers. Partially because ofits cost advantage, the fund’s return ranked in thecategory’s top quintile over the trailing 10 years throughMay 2016, with similar volatility to the category average.Tax efficiency adds to the fund’s appeal. It has not madea capital gains distribution in the past decade, owing tolow turnover and its separate exchange-traded fund shareclass. The managers can move low-cost basis shares outof the portfolio in a tax-free transaction with the ETF'sauthorized participants, reducing potential capital gainstax liabilities.




ß® Mutual Funds A

79

Fund Name: Vanguard Total Intl Stock Index Adm (Ticker: VTIAX) Manager: Vanguard

Asset Class: Foreign Large Blend Fund Type: Passive


Diagnostics Report

Vanguard Total Intl Stock Index Adm passes 8 of 9 of our investable fund criteria. The fund falls within an acceptable range for volatility.

Fund DescriptionThe fund offers investors a low-cost way to gain equity exposure to both developed and emerging international economies by investing in stocks in the FTSE Global All Capex-U.S. Index. The fund invests substantially all of its assets in the common stocks included in its target index.



The fund’s expense ratio is 0.11%,below the foreign large blendcategory average of 1.11%.


Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s 3-year sharpe ratio is -0.06%,above the foreign large blend categoryaverage of -0.13%.

The fund’s 3-year alpha is 0.31%,above the foreign large blendcategory average of -0.54%.

The fund’s 3-year standard deviationis 12.11%, above the foreign largeblend category average of 12.05%.

The fund’s 3-year r-squared is97.98%, above the foreign largeblend category average of 89.09%.

The fund’s turnover ratio is23.86%, below the foreign largeblend category average of 59.55%.

80


Vanguard Total Intl Stock Index Admiral TickerVTIAX

Yield2.9%


Mstar CategoryForeign Large Blend

Benchmark 1: MSCI ACWI Ex USA NR USDBenchmark 2: MSCI ACWI Ex USA NR USD






Œ „ ´ ‰ Á

Pillar Spectrum


10.0

11.0

12.0

13.0

9.0




Growth of $10,000


( * ) * ) & Performance Quartile(within Category)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12-16 History. . . . 26.35 21.84 25.05 28.01 26.00 24.24 24.63 NAV. . . . . -14.52 18.21 15.14 -4.17 -4.26 4.67 Total Return %. . . . . -0.82 1.38 -0.14 -0.31 1.40 0.18 +/- Bmark 1. . . . . -0.82 1.38 -0.14 -0.31 1.40 0.18 +/- Bmark 2. . . . . 2.56 3.44 3.06 3.20 2.67 3.01 Income Return %. . . . . -17.09 14.77 12.09 -7.37 -6.93 1.66 Capital Return %. . . . . 60 49 83 33 79 12 Total Rtn % Rank Cat. . . . 0.42 0.68 0.75 0.76 0.89 0.69 0.72 Income $. . . . . 0.00 0.00 0.00 0.00 0.00 0.00 Capital Gains $. . . . . 0.18 0.16 0.14 0.14 0.12 0.11 Expense Ratio %. . . . . 2.99 3.23 2.87 3.24 2.80 3.02 Income Ratio %. . . . . 3 3 5 3 6 3 Turnover Rate %. . . . 2,167 12,415 16,419 22,472 30,693 37,357 46,083 Net Assets $mil


2012 12.00 -7.48 6.93 6.69 18.212013 2.90 -3.24 10.27 4.87 15.142014 0.80 5.05 -5.55 -4.19 -4.172015 4.09 1.28 -11.61 2.74 -4.262016 -0.17 0.26 6.65 -1.93 4.67


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo -1.93 -0.68 -0.68 44 9,8076 Mo 4.59 -0.98 -0.98 37 10,4591 Yr 4.67 0.17 0.18 12 10,4673 Yr Avg -1.34 0.44 0.44 30 9,6035 Yr Avg 5.50 0.50 0.50 59 13,07110 Yr Avg — — — — —15 Yr Avg — — — — —

Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat3 Yr (estimated) -2.42 32 1.09 745 Yr (estimated) 4.37 59 1.07 7410 Yr (estimated) — — — —

Potential Capital Gain Exposure: -3% of assets


Load-AdjReturn %




1 Yr 4.673 Yr -1.34 +Avg Avg QQQ5 Yr 5.50 Avg Avg QQQ10 Yr — — — —Incept 2.99




Portfolio Analysis 11-30-16Total Stocks: 5961Share change since 10-31-16 Sector Country % AssetsTNestle SA Cnsmr Def Switzerland 1.04TNovartis AG Hlth Care Switzerland 0.82TToyota Motor Corp Cnsmr Cyc Japan 0.82TRoche Holding AG Dividend Hlth Care Switzerland 0.80THSBC Holdings PLC Finan Svcs United Kingdom 0.79TSamsung Electronics Co Lt Technology South Korea 0.76TTencent Holdings Ltd Technology China 0.67TTaiwan Semiconductor Manu Technology Taiwan 0.65TBP PLC Energy United Kingdom 0.55TRoyal Dutch Shell PLC Cla Energy United Kingdom 0.55TTotal SA Energy France 0.52TBritish American Tobacco Cnsmr Def United Kingdom 0.51TCommonwealth Bank of Aust Finan Svcs Australia 0.50TRoyal Dutch Shell PLC B Energy United Kingdom 0.50TRoyal Bank of Canada Finan Svcs Canada 0.48TGlaxoSmithKline PLC Hlth Care United Kingdom 0.46TSanofi SA Hlth Care France 0.45TThe Toronto-Dominion Bank Finan Svcs Canada 0.44TSiemens AG Industrl Germany 0.43TAnheuser-Busch InBev SA/N Cnsmr Def Belgium 0.42


LargeM

idSm

all





Long-Term Erngs 8.85 0.99Book Value -6.21 -1.82Sales -17.38 10.15Cash Flow -6.39 -1.85Historical Erngs -59.71 16.13

Composition - Net



SectorWeightings

% ofStocks

RelBmark 1







Japan 19UK 13Canada 7

France 6Germany 6

Morningstar's Take by Matthew Diamond 09-07-16Vanguard Total International Stock Index is a well-run,one-stop shop for broad exposure to stocks listed inforeign developed and emerging markets. Its diversified,market-cap-weighted portfolio and a sizable costadvantage from one of the industry’s top stewardssupport its Morningstar Analyst Rating of Gold.

The fund owns approximately 6,000 stocks across alldeveloped (excluding the United States) and emergingmarkets, representing 98% of the investable market. Itemploys a market-cap-weighting approach thatpromotes low turnover and skews the portfolio towardlarge multinationals with global operations, such asNestle NSRGY, Toyota TM, and pharmaceuticals RocheRHHBY and Novartis NVS. These companies tend to bemore profitable and less volatile than their smallercounterparts.

Sector weightings are consistent with the averagefund in the foreign large-blend Morningstar Category, butthe fund has above-average exposure to emerging-markets companies. Emerging-markets stocks currentlyaccount for 15% of the portfolio, compared with the 7%category average. As a result, the fund has an

overweighting to Chinese stocks and an underweightingto developed Europe, including the United Kingdom,compared with its category peers.

Although recent emerging-markets performance hasbeen a drag on returns, this fund’s cost advantage givesit an edge over the long term. Its trailing 10- and 15-yearreturns through July 2016 best more than two thirds ofits category peers. Vanguard’s unique ability to offer anexchange-traded fund share class increases the fund’stax efficiency. Managers are able to mitigate capital gainsby transferring shares out of the portfolio in a tax-freetransaction, known as an in-kind redemption, with theETF’s market makers. Low turnover also reduces capitalgains.

Like most of its peers, the fund does not hedge itscurrency risk, which can hurt performance and boostvolatility when the U.S. dollar strengthens relative toforeign currencies. The fund has significant exposure tothe euro, Japanese yen, and British pound.

Address: Vanguard Star Funds Minimum Purchase: $10000 Add: $1 IRA: —Valley Forge PA 19482 Min Auto Inv Plan: — Add: —800-662-7447 Sales Fees: No-load



ß® Mutual Funds A

81

Fund Name: Northern Emerging Markets Equity Index (Ticker: NOEMX) Manager: Northern Funds

Asset Class: Emerging Markets Fund Type: Passive


Diagnostics Report

Northern Emerging Markets Equity Index passes 6 of 9 of our investable fund criteria. The fund falls within an acceptable range for value added. We continue to monitor

the fund’s performance relative to its peers as well as volatility.

Fund DescriptionThe fund invests in emerging market stocks in the MSCI Emerging Markets Index. Using quantitative analysis, the team seeks to create a portfolio that will approximatethe performance of its target index.



The fund’s expense ratio is 0.30%,below the emerging markets categoryaverage of 1.48%.


Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s 3-year sharpe ratio is -0.13%,above the emerging markets categoryaverage of -0.15%.

The fund’s 3-year alpha is -0.88%,above the emerging marketscategory average of -1.13%.

The fund’s 3-year standard deviation is16.08%, above the emerging marketscategory average of 15.06%.

The fund’s 3-year r-squared is 72.81%,above the emerging markets categoryaverage of 70.84%.

The fund’s turnover ratio is 34.20%,below the emerging markets categoryaverage of 70.08%.

82

Northern Emerging Markets Equity Index Fund NOEMX Morningstar Analyst Rating—


10.14 [-0.06 | -0.59 1.92 2 Open $2,500 None 0.30% QQQ Diversified EmergingMkts

4 Large Blend

Growth of 10,000 01-30-2007 - 01-30-2017

5K

9K

12K

15K

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Northern Emerging MarketsEquity Index Fund $11,991.58Diversified Emerging Mkts$11,993.03MSCI ACWI Ex USA NR USD$11,395.10

Investment Strategy

The investment seeks to provide investment results approximating the overall performance of the MSCI Emerging Markets®Index. The fund will invest substantially all (and at least 80%) of its net assets in equity securities, in weightings that approxim-ate the relative composition of the securities included in the MSCI Emerging Markets Index, in American Depository Receipts,European Depository Receipts, and Global Depository Receipts representing such securities, and in MSCI Emerging Markets In-dex futures approved by the Commodity Futures Trading Commission.



Growth of 10,000 10,640 10,640 12,452 10,391 10,085 11,925Fund 6.40 6.40 24.52 1.29 0.17 1.78+/- MSCI ACWI Ex USA NRUSD

2.85 2.85 8.42 0.49 -4.31 0.51

+/- Category 0.74 0.74 3.18 0.56 -0.82 -0.16% Rank in Cat 30 30 29 46 63 52# of Funds in Cat 879 879 808 599 424 173* Currency is displayed in USD


Y Samsung Electronics Co Ltd 3.71 — USD -1.10 [ 1,118,000.00 -2,000,000.00

Y Taiwan Semiconductor ManufacturingCo Ltd

3.49 185.50 USD 0.27 ] 137.00 - 193.00

Y Tencent Holdings Ltd 3.49 204.40 USD -0.29 [ 132.10 - 220.80

Y Alibaba Group Holding Ltd ADR 2.50 101.14 USD 0.14 ] 59.25 - 109.87

Y China Construction Bank Corp H 1.63 5.80 USD -0.69 [ 4.31 - 6.14





a Technology 23.33 23.33 19.67 21.97



o Energy 7.58 7.58 6.62 5.72

Fund Cat Avg

0 10 20 30 40


DistributionNAV



Return ofCapital

DividendIncome

DistributionTotal

12-15-2016 9.53 0.0000 0.0000 0.0000 0.1800 0.180012-17-2015 8.81 0.0000 0.0000 0.0000 0.2200 0.220012-18-2014 10.48 0.0000 0.0000 0.0000 0.2900 0.290012-19-2013 11.07 0.0000 0.0000 0.0000 0.2300 0.230012-19-2012 11.75 0.0000 0.0000 0.0000 0.2700 0.2700


Risk vs. Category +Avg

Low Avg High

(606)


Pillars


Rating .

Style Map

DeepVal

CoreVal

Core CoreGrow

HighGrow

Micro

Small

Medium

Large



Asset Allocation

%Net

%Short

%Long

Benchmark

CatAvg

Cash -0.03 0.05 0.02 -0.03 2.85US Stock 0.07 0.00 0.07 0.07 1.32Non US Stock 98.89 0.00 98.89 99.67 95.88Bond 0.00 0.00 0.00 0.00 -0.43Other 1.07 0.00 1.07 0.29 0.38


Steven J. Santiccioli 07-31-2007



®



®

Page 1 of 11

83

Fund Name: Vanguard Long-Term Bond Index Inv (Ticker: VBLTX) Manager: Vanguard

Asset Class: Long-Term Bond Fund Type: Passive


Diagnostics Report

Vanguard Long-Term Bond Index Inv passes 5 of 9 of our investable fund criteria. The fund falls within an acceptable range for performance relative to its peers. We

continue to monitor the fund’s risk/return, value added, and volatility as the fund’s metrics trail the peer group.

Fund DescriptionVanguard Long-Term Bond Index Inv offers investors a low-cost, diversified approach to bond investing by providing broad exposure to U.S. investment-grade bonds withmaturities of more than ten years. The fund’s passive investment style uses a sample technique to closely match key benchmark characteristics such as sector weight,coupon, maturity, effective duration, and credit quality of the Bloomberg Barclays U.S. Long Government/Credit Float Adjusted Index.



The fund’s expense ratio is0.16%, below the long-term bondcategory average of 0.49%.


Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s 3-year sharpe ratio is0.78%, below the long-termbond category average of 0.93%.

The fund’s 3-year alpha is -1.20%,below the long-term bond categoryaverage of -0.02%.

The fund’s 3-year standard deviationis 9.15%, above the long-term bondcategory average of 7.67%.

The fund’s 3-year r-squared is91.98%, above the long-termbond category average of 86.32%.

The fund’s turnover ratio is42%, below the long-term bondcategory average of 46.33%.

84

Vanguard Long-Term Bond Index Fund Investor Shares VBLTX Morningstar Analyst Rating—


13.49 [-0.04 | -0.28 3.91 9 Open $3,000 None 0.16% QQQ Long-Term Bond 0

Growth of 10,000 01-30-2007 - 01-30-2017

9K

13K

17K

22K

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Vanguard Long-Term BondIndex Fund Investor Shares$19,513.68Long-Term Bond $18,230.19BBgBarc US Agg Bond TRUSD $15,368.82

Investment Strategy

The investment seeks to track the performance of a market-weighted bond index with a long-term dollar-weighted average ma-turity. The fund employs an indexing investment approach designed to track the performance of the Bloomberg Barclays U.S.Long Government/Credit Float Adjusted Index. This index includes all medium and larger issues of U.S. government, invest-ment-grade corporate, and investment-grade international dollar-denominated bonds that have maturities of greater than 10years and are publicly issued. All of its investments will be selected through the sampling process, and at least 80% of thefund's assets will be invested in bonds held in the index.




0.09 0.09 2.84 3.13 1.79 2.52

+/- Category -0.11 -0.11 0.01 -0.03 -0.69 0.12% Rank in Cat 47 47 50 60 92 67# of Funds in Cat 31 31 29 16 15 7* Currency is displayed in USD


US Treasury Bond 3.625% 1.72 02-15-2044 142.44 157.62

Y US Treasury Bond 2.875% 1.66 05-15-2043 157.46 151.82US Treasury Bond 3% 1.61 11-15-2044 149.56 147.45

T US Treasury Bond 3.75% 1.53 11-15-2043 123.87 140.22

Y US Treasury Bond 2.5% 1.50 02-15-2045 154.57 137.42




Corporate Bond 50.71 — 49.44U.S. Treasury 38.95 — 20.80Non-U.S. Government 3.01 — 1.86U.S. Agency 1.41 — 2.86Commercial MBS 1.26 — 2.63

Fund Cat Avg

0 15 30 45 60


DistributionNAV



Return ofCapital

DividendIncome

DistributionTotal

12-30-2016 13.51 0.0000 0.0000 0.0000 0.0400 0.040012-21-2016 13.38 0.0000 0.0200 0.0000 0.0000 0.020011-30-2016 13.48 0.0000 0.0000 0.0000 0.0400 0.040010-31-2016 14.42 0.0000 0.0000 0.0000 0.0400 0.040009-30-2016 14.90 0.0000 0.0000 0.0000 0.0400 0.0400


Risk vs. Category High

Low Avg High

(17)


Pillars


Rating .


Ltd Mod Ext

HighM

edLow


Average Effective Duration (Years) 14.98Average Effective Maturity (Years) 24.10Average Credit Quality AAverage Weighted Coupon 4.72Average Weighted Price 110.15

Asset Allocation

Asset Class % Net



Joshua C. Barrickman 02-22-2013Christopher E.Wrazen 07-07-2015



®



®

Page 1 of 11

85

Fund Name: Vanguard Short-Term Bond Index Adm (Ticker: VBIRX) Manager: Vanguard

Asset Class: Short-Term Bond Fund Type: Passive


Diagnostics Report

Vanguard Short-Term Bond Index Adm passes 5 of 9 of our investable fund criteria. The fund falls within an acceptable range for performance relative to its peers,

risk/return, value added, and volatility.

Fund DescriptionThe fund offers low-cost index fund exposure to U.S. investment-grade bonds with maturities from one to five years. The fund’s passive investment style uses a samplingtechnique to closely match key benchmark characteristics such as sector weight, coupon, effective duration, and credit quality of the Bloomberg Barclays U.S. 1-5 YearGovernment/Credit Float Adjusted Index.



The fund’s expense ratio is0.09%, below the short-termbond category average of 0.78%.


Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s 3-year sharpe ratio is0.77%, below the short-term bondcategory average of 0.80%.

The fund’s 3-year alpha is -0.16%,below the short-term bond categoryaverage of 0.12%.

The fund’s 3-year standard deviationis 1.41%, above the short-term bondcategory average of 1.28%.

The fund’s 3-year r-squared is83.87%, above the short-termbond category average of 55.05%.

The fund’s turnover ratio is 52%, belowthe short-term bond category averageof 89.97%.

86


Vanguard Short-Term Bond Index Adm TickerVBIRX

Yield1.5%

SEC Yield1.70%


Mstar CategoryShort-Term Bond

Benchmark 1: BBgBarc US Govt/Credit 1-5 Yr TR USDBenchmark 2: BBgBarc US Agg Bond TR USD






Œ „ ´ ‰ Á

Pillar Spectrum


10.0

11.0

12.0

13.0

14.0




Growth of $10,000


* & & ) * & ) ( * & ( Performance Quartile(within Category)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12-16 History9.89 10.13 10.28 10.42 10.55 10.61 10.63 10.49 10.48 10.43 10.43 NAV4.16 7.31 5.51 4.38 4.03 3.08 2.05 0.17 1.26 0.92 1.49 Total Return %

-0.05 0.04 0.39 -0.24 -0.05 -0.06 -0.19 -0.12 -0.17 -0.05 -0.07 +/- Bmark 1-0.17 0.34 0.27 -1.55 -2.51 -4.77 -2.17 2.19 -4.71 0.37 -1.16 +/- Bmark 24.45 4.80 3.99 2.99 2.33 1.96 1.56 1.20 1.21 1.32 1.49 Income Return %

-0.29 2.51 1.52 1.39 1.70 1.12 0.49 -1.03 0.04 -0.39 0.00 Capital Return %40 3 3 84 44 10 79 60 33 9 64 Total Rtn % Rank Cat

0.43 0.46 0.40 0.30 0.24 0.20 0.16 0.13 0.13 0.14 0.15 Income $0.00 0.00 0.00 0.00 0.05 0.06 0.03 0.03 0.02 0.01 0.00 Capital Gains $0.11 0.10 0.11 0.12 0.11 0.11 0.10 0.10 0.10 0.09 0.08 Expense Ratio %4.39 4.66 3.87 2.88 2.26 1.92 1.54 1.19 1.20 1.30 1.44 Income Ratio %106 79 101 77 60 67 51 50 45 52 . Turnover Rate %

2,528 1,502 1,632 1,961 3,766 4,094 4,401 5,035 13,212 14,662 15,335 Net Assets $mil


2012 0.45 0.59 0.85 0.15 2.052013 0.21 -0.74 0.57 0.13 0.172014 0.40 0.58 -0.07 0.34 1.262015 1.01 -0.06 0.62 -0.65 0.922016 1.60 0.93 0.09 -1.12 1.49


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo -1.12 -0.07 1.86 86 9,8886 Mo -1.03 -0.02 1.50 88 9,8971 Yr 1.49 -0.07 -1.16 64 10,1493 Yr Avg 1.22 -0.10 -1.81 40 10,3725 Yr Avg 1.18 -0.11 -1.06 64 10,60210 Yr Avg 3.00 -0.05 -1.35 28 13,43515 Yr Avg 3.12 -0.17 -1.46 34 15,852




Load-AdjReturn %




1 Yr 1.493 Yr 1.22 Avg +Avg QQQ5 Yr 1.18 -Avg Avg QQ10 Yr 3.00 +Avg Avg QQQQIncept 3.02







%Assets

US Treasury Note 1.25% 11-30-18 749,264 751,017 1.62US Treasury Note 1.25% 10-31-21 746,971 725,025 1.56US Treasury Note 1.5% 11-30-19 709,865 711,420 1.53US Treasury Note 1.25% 03-31-21 689,875 674,353 1.45US Treasury Note 1.375% 08-31-20 667,485 660,603 1.42US Treasury Note 1.625% 11-30-20 656,725 654,262 1.41US Treasury Note 1.125% 08-31-21 651,438 630,064 1.36US Treasury Note 1.375% 05-31-21 612,595 601,207 1.30US Treasury Note 1.375% 03-31-20 601,908 598,995 1.29US Treasury Note 1.125% 09-30-21 592,683 572,307 1.23US Treasury Note 1% 08-15-18 548,419 547,646 1.18US Treasury Note 1.625% 07-31-20 543,474 543,218 1.17US Treasury Note 1.375% 02-29-20 536,907 534,555 1.15US Treasury Note 1.75% 11-30-21 530,145 527,659 1.14US Treasury Note 1.375% 10-31-20 530,380 523,915 1.13US Treasury Note 1.125% 06-30-21 524,218 507,836 1.09US Treasury Note 1.625% 08-31-19 491,569 495,177 1.07US Treasury Note 1% 05-31-18 484,660 484,510 1.04US Treasury Note 1.625% 06-30-19 465,386 469,239 1.01US Treasury Note 1.625% 03-31-19 444,295 448,462 0.97


QualityHigh

Med

Low

DurationLtd Mod Ext


Avg Eff Duration1 2.8 YrsAvg Eff Maturity 2.9 YrsAvg Credit Quality AAAvg Wtd Coupon 1.95%Avg Wtd Price 100.50% of par




AAA 70 BB 0AA 6 B 0A 12 Below B 0BBB 12 Not Rated 0



Composition - Net


Special Securities


Morningstar's Take by Emory Zink 09-06-16Vanguard Short-Term Bond Index is a compelling optionfor its low fees, strong performance, and low trackingerror. The fund earns a Morningstar Analyst Rating ofSilver.

This fund targets short-term, investment-gradegovernment, corporate, and securitized bondsdenominated in U.S. dollars and weights its holdings byfree-float-adjusted market capitalization. As a result, theportfolio skews heavily toward Treasury bonds, whichtypically account for as much as two thirds of theportfolio, a much larger allocation than the average peer.This gives the fund a higher-quality portfolio than many ofits peers', which may help the fund hold up better duringtough economic climates, but also results in lowerexpected returns. The fund’s duration of 2.7 years wasslightly longer than the short-term bond MorningstarCategory average (2.2 years) at the end of July 2016,which could hurt the fund’s relative performance in aperiod of rising interest rates.

However, low fees give this fund a sustainable edge.The fund charges a rock-bottom 0.09% expense ratio. Incontrast, the average fund in the short-term category

charges around 70 basis points. In a low-interest-rateenvironment, it may be especially difficult for more-expensive funds to overcome this cost hurdle. The free-float-adjusted market-cap-weighting approach also helpsreduce transaction costs as it tilts the portfolio towardmore-liquid issues, which tend to be cheapest to trade.

In the years when the markets have performedstrongly, the fund’s cost advantage could not make up forthe lower return it earned on its higher-quality bonds. Forexample, it trailed 80% of its peers during 2012, whentaking more credit risk paid off. However, this quality tilthelped the fund hold up better during economicslowdowns, including 2008, when it beat 97% of its short-term bond peers with a 5.5% gain versus a categoryaverage loss of 4.2%. During the trailing 10-year periodthrough August 2016, the fund's returns landed near thetop third of its category.

Address: Vanguard Bond Index Funds Minimum Purchase: $10000 Add: $1 IRA: —Valley Forge PA 19482 Min Auto Inv Plan: — Add: —800-662-7447 Sales Fees: No-load

Web Address: www.vanguard.com Management Fee: 0.07%Inception: 11-12-01 Actual Fees: Mgt:0.07% Dist:—Advisor: Vanguard Group Inc Expense Projections: 3Yr:$29 5Yr:$51 10Yr:$115Subadvisor: None Income Distribution: Monthly


ß® Mutual Funds D

87

Fund Name: Vanguard Short-Term Govt Bond Index Adm (Ticker: VSBSX) Manager: Vanguard

Asset Class: Short-Term Govt Bond Fund Type: Passive


Diagnostics Report

Vanguard Short-Term Govt Bond Index Adm passes 7 of 9 of our investable fund criteria. The fund falls within an acceptable range for performance relative to its peers and

value added.

Fund DescriptionThe low-cost index fund invests in debt issued by the U.S. Treasury and U.S. government agencies, as well as corporate or dollar-denominated foreign debt guaranteed bythe U.S. government, all with maturities between 1 and 3 years. The fund invests by sampling its benchmark, the Bloomberg Barclays U.S. 1-3 Yr. Govt Flt Adj Idx.



The fund’s expense ratio is 0.07%,below the short-term governmentbond category average of 0.76%.


Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s 3-year sharpe ratio is 0.57%,above the short-term government bondcategory average of 0.39%.

The fund’s 3-year alpha is -0.17%,above the short-term governmentbond category average of -0.35%.

The fund’s 3-year standard deviation is0.80%, below the short-term governmentbond category average of 1.08%.

The fund’s 3-year r-squared is 67.54%,above the short-term governmentbond category average of 62.78%.

The fund’s turnover ratio is 73%,below the short-term governmentbond category average of 97.90%.

88

Vanguard Short-Term Government Bond Index Fund Admiral SharesVSBSX


—


20.27 [0.00 | 0.00 0.82 1.6 Open $10,000 None 0.07% QQQ Short Government 0

Growth of 10,000 11-19-2009 - 01-30-2017

10K

11K

12K

13K

2010 2011 2012 2013 2014 2015 2016 2017

Vanguard Short-TermGovernment Bond Index FundAdmiral Shares $10,579.73Short Government$10,681.66BBgBarc US Agg Bond TRUSD $12,729.56

Investment Strategy

The investment seeks to track the performance of a market-weighted government bond index with a short-term dollar-weightedaverage maturity. The fund employs an indexing investment approach designed to track the performance of the BloombergBarclays U.S. 1-3 Year Government Float Adjusted Index. This index includes fixed income securities issued by the U.S. Treas-ury and U.S. government agencies and instrumentalities, as well as corporate or dollar-denominated foreign debt guaranteedby the U.S. government, all with maturities between 1 and 3 years. At least 80% of the fund's assets will be invested in bondsincluded in the index.



Growth of 10,000 10,010 10,010 10,029 10,180 10,244 —Fund 0.10 0.10 0.29 0.60 0.48 —+/- BBgBarc US Agg BondTR USD

0.04 0.04 -1.02 -1.99 -1.61 —

+/- Category 0.04 0.04 0.30 0.09 0.13 —% Rank in Cat 29 29 28 45 43 —# of Funds in Cat 105 105 104 97 90 72* Currency is displayed in USD


US Treasury Note 1.375% 2.82 09-30-2018 43.60 43.76

T US Treasury Note 0.75% 2.54 08-15-2019 40.03 39.41

R US Treasury Note 1.375% 2.31 12-15-2019 36.00 35.91

T US Treasury Note 1% 2.09 09-15-2018 32.44 32.37US Treasury Note 0.75% 1.86 10-31-2018 29.00 28.79




U.S. Treasury 89.84 — 56.52Commercial MBS 6.51 — 12.02U.S. Agency 0.90 — 6.80Agency MBS Pass-Through 0.09 — 8.69Non-U.S. Government 0.03 — 0.75

Fund Cat Avg

0 30 60 90 120



Low Avg High

(101)

Return vs. Category None(101)

Pillars


Rating .


Ltd Mod Ext

HighM

edLow


Average Effective Duration (Years) 1.95Average Effective Maturity (Years) 2.00Average Credit Quality AAAAverage Weighted Coupon 1.30Average Weighted Price 100.15

Asset Allocation

Asset Class % Net



Joshua C. Barrickman 02-22-2013



®



®

Page 1 of 22

89

aavila

Rectangle

Fund Name: Vanguard REIT Index Adm (Ticker: VGSLX) Manager: Vanguard

Asset Class: Real Estate Fund Type: Passive


Diagnostics Report

Vanguard REIT Index Adm passes 7 of 9 of our investable fund criteria. The fund fails on volatility and correlation to benchmark.

Fund DescriptionVanguard REIT Index Adm invests in real estate investment trusts—companies that purchase office buildings, hotels and other real estate property. The fund seeks toprovide a high level of income and moderate long-term capital appreciation by using a full-replication process to track the performance of the MSCI US REIT index.



The fund’s expense ratio is0.12%, below the real estatecategory average of 1.26%.


Morningstar Rating





Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass PassFail

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass

AcceptableMonitor

Fail Pass


Fail Pass

The fund’s 3-year sharpe ratiois 0.88%, above the real estatecategory average of 0.87%.

The fund’s 3-year alpha is11.40%, above the real estatecategory average of 9.99%.

The fund’s 3-year standard deviationis 15.17%, above the real estatecategory average of 14.12%.

The fund’s 3-year r-squared is16.57%, below the real estatecategory average of 21.87%.

The fund’s turnover ratio is 11%,below the real estate categoryaverage of 74.28%.

90


Vanguard REIT Index Adm TickerVGSLX

Yield4.8%


Mstar CategoryReal Estate

Benchmark 1: S&P United States REIT TR USDBenchmark 2: MSCI ACWI NR USD






Œ „ ´ ‰ Á

Pillar Spectrum


10.0

15.0

20.0

25.0

5.0


Above AvgAbove AvgQQQNeutral


Growth of $10,000


* * * * * * * * * ( & Performance Quartile(within Category)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12-16 History109.15 87.25 51.75 63.33 78.44 82.15 93.24 91.58 114.83 112.98 116.87 NAV35.16 -16.39 -36.98 29.76 28.49 8.62 17.69 2.42 30.32 2.39 8.50 Total Return %-0.88 0.31 1.35 1.16 0.01 0.14 -0.30 0.02 0.05 -0.15 0.01 +/- Bmark 114.20 -28.05 5.21 -4.87 15.82 15.96 1.56 -20.39 26.16 4.75 0.64 +/- Bmark 23.22 2.61 3.18 4.15 4.28 2.52 2.82 3.02 4.00 2.72 5.07 Income Return %

31.94 -19.00 -40.17 25.60 24.21 6.10 14.87 -0.60 26.32 -0.33 3.43 Capital Return %44 50 30 46 30 40 29 27 32 64 18 Total Rtn % Rank Cat


17 11 13 10 16 12 10 9 11 8 11 Turnover Rate %3,047 1,743 1,058 1,371 4,479 5,221 6,917 7,571 14,374 15,469 18,228 Net Assets $mil


2012 10.72 3.73 -0.02 2.49 17.692013 8.07 -1.61 -3.00 -0.71 2.422014 9.98 7.02 -3.13 14.30 30.322015 4.72 -10.46 2.01 7.04 2.392016 6.27 6.80 -1.47 -2.97 8.50


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo -2.97 -0.01 -4.16 53 9,7036 Mo -4.40 -0.17 -10.96 59 9,5601 Yr 8.50 0.01 0.64 18 10,8503 Yr Avg 13.13 -0.03 9.99 20 14,4775 Yr Avg 11.78 -0.07 2.42 16 17,44910 Yr Avg 5.23 0.34 1.67 17 16,64915 Yr Avg 10.78 0.05 4.86 35 46,434




Load-AdjReturn %




1 Yr 8.503 Yr 13.13 +Avg +Avg QQQ5 Yr 11.78 +Avg +Avg QQQQ10 Yr 5.23 +Avg +Avg QQQIncept 11.11




Portfolio Analysis 11-30-16Total Stocks: 157Share change since 10-31-16 Sector YTD Ret % % AssetsYSimon Property Group Inc Real Est -5.28 7.27YPublic Storage Real Est -6.82 3.97YPrologis Inc Real Est 26.91 3.45TEquinix Inc Real Est 20.51 3.10YAvalonBay Communities Inc Real Est -0.86 2.91YWelltower Inc Real Est 3.44 2.89YEquity Residential Real Est -5.78 2.82TVentas Inc Real Est 16.05 2.73YBoston Properties Inc Real Est 0.74 2.45YVornado Realty Trust Real Est 6.93 2.14YDigital Realty Trust Inc Real Est 34.59 1.89YGeneral Growth Properties Real Est -4.30 1.88YRealty Income Corp Real Est 15.98 1.85YEssex Property Trust Inc Real Est -0.21 1.82YHCP Inc Real Est -6.92 1.78YHost Hotels & Resorts Inc Real Est 28.36 1.71YKimco Realty Corp Real Est -1.00 1.38YSL Green Realty Corp Real Est -2.21 1.36YFederal Realty Investment Real Est -0.10 1.29YUDR Inc Real Est 0.19 1.17


LargeM

idSm

all






Profitability %


SectorWeightings

% ofStocks

RelBmark 1

h Cyclical 98.94 -0.05r BasicMat 0.00 —t CnsmrCyc 0.14 0.88y FinanSvcs 0.00 —u Real Est 98.80 1.00

j Sensitive 1.06 0.00i CommSrvs 0.00 —o Energy 0.00 —p Industrl 1.06 1.04a Technlgy 0.00 —

k Defensive 0.00 —s CnsmrDef 0.00 —d Hlthcare 0.00 —f Utilities 0.00 —

Composition - Net


Morningstar's Take by Robert Goldsborough 02-12-16Vanguard REIT Index is one of the cheapest ways forinvestors to gain broad market-capitalization-weightedexposure to REITs. Vanguard's managers and traders hewas closely as possible to the benchmark, so this fund'sreturn has never lagged its index by more than its low0.12% expense ratio. Real estate is traditionallyconsidered an asset class that benefits from activemanagement, but this fund has a long track record as astrong performer relative to actively managed funds inthe real estate Morningstar Category. Because of its lowcost, close tracking, and above-average categoryperformance, it earns a Morningstar Analyst Rating ofGold.

REITs manage commercial properties, rent them outunder long-term leases, collect rent, and, by law, mustdistribute the majority of their accounting earnings,typically resulting in strong payouts. Traditionally viewedas a liquid way to buy commercial real estate and improvea portfolio's diversification, the sector's investor base hasexpanded in recent years. Thanks to REITs' relativelyhigher yields, the asset class now attracts income-oriented investors.

This fund bucks the common view that activemanagement has an edge in the real estate sector andcan outperform because it can exploit shifts in industrydynamics or focus on smaller names. Yet, very fewactively managed funds have outperformed over time. Asa result, this index fund's performance landed in itscategory's first and second quartiles during the pastthree-, five-, and 10-year periods ending Feb. 5, 2016.The fund tends to be more volatile than the categoryaverage, but its risk-adjusted return also has been higher,compensating investors for additional risk.

After years of record-low interest rates, interest rateshave started to rise. Higher rates are the REIT sector'sgreatest headwind. As rates rise, REITs' interestpayments go up, meaning they have less cash flowavailable for dividends for equity investors. Higher ratesmean less business reinvestment. REITs with lots of debtand higher levels of near-term maturities--which wouldneed to be refinanced--will fare worse than REITs withless debt and long-dated debt maturity schedules.

Address: Vanguard Specialized Funds Minimum Purchase: $10000 Add: $1 IRA: —Valley Forge PA 19482 Min Auto Inv Plan: — Add: —800-662-7447 Sales Fees: No-load



ß® Mutual Funds A

91


Vanguard Target Retirement Income Inv TickerVTINX

Yield1.9%


Mstar CategoryTarget-Date Retirement

Benchmark 1: Morningstar Lifetime Mod Incm TR USDBenchmark 2: Morningstar Mod Tgt Risk TR USD






Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.0

14.0

16.0




Growth of $10,000


( & & ) * & ( ( & & * Performance Quartile(within Category)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12-16 History10.70 11.13 9.52 10.59 11.28 11.53 12.19 12.50 12.91 12.45 12.81 NAV6.38 8.17 -10.93 14.28 9.39 5.25 8.23 5.87 5.54 -0.17 5.25 Total Return %

-1.86 -1.55 1.74 -1.23 -0.63 1.12 -0.56 -0.58 1.45 1.12 -0.73 +/- Bmark 1-6.57 -0.47 11.27 -7.50 -2.94 4.66 -3.82 -8.44 0.65 1.62 -3.32 +/- Bmark 23.79 4.08 3.84 2.92 2.58 2.83 2.30 1.68 1.91 1.79 2.01 Income Return %2.59 4.09 -14.77 11.36 6.81 2.42 5.93 4.19 3.63 -1.96 3.24 Capital Return %


22 3 14 29 12 14 7 40 6 14 11 Turnover Rate %897 1,555 1,864 2,745 3,960 5,402 9,711 10,499 11,379 10,296 10,516 Net Assets $mil


2012 3.93 0.32 3.06 0.72 8.232013 2.54 -1.80 2.67 2.41 5.872014 1.59 2.74 -0.39 1.52 5.542015 1.75 -0.93 -2.11 1.16 -0.172016 2.35 1.90 1.93 -0.99 5.25


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo -0.99 -0.33 -1.37 65 9,9016 Mo 0.92 -0.14 -2.87 62 10,0921 Yr 5.25 -0.73 -3.32 41 10,5253 Yr Avg 3.51 0.63 -0.29 8 11,0895 Yr Avg 4.91 0.16 -2.55 29 12,70610 Yr Avg 4.88 0.08 -0.35 9 16,10715 Yr Avg — — — — —




Load-AdjReturn %








Portfolio Analysis 11-30-16Total Stocks: 0Share change since 10-31-16 Sector YTD Ret % % AssetsTVanguard Total Bond Marke — — 36.74YVanguard Total Stock Mkt — — 18.57YVanguard Shrt-Term Infl-P — — 16.83TVanguard Total Intl Bd Id — — 15.84TVanguard Total Intl Stock — — 12.03YCMT Market Liquidity Rate — — 0.00



%Assets

Equity StyleStyle: BlendSize: Large-Cap

Fixed-Income StyleDuration: ModerateQuality: High

Value Measures Rel CategoryPrice/Earnings 17.20 0.97Price/Book 1.93 0.91Price/Sales 1.35 0.90Price/Cash Flow 7.01 0.88Dividend Yield % 2.73 1.03Growth Measures % Rel Category

Long-Term Erngs 8.96 1.00Book Value -2.90 -1.83Sales -6.45 4.14Cash Flow -4.56 -6.01Historical Erngs -55.22 2.80Market Cap %Giant 43.8 Small 5.6Large 30.6 Micro 1.7Mid 18.3 Avg $mil: 31,597

Composition - Net


Avg Eff Duration1 5.4 YrsAvg Eff Maturity 7.1 YrsAvg Credit Quality AAAvg Wtd Coupon 2.36%1 figure provided by fund as of 11-30-16

SectorWeightings

% ofStocks

RelBmark 1




Morningstar's Take by Susan Wasserman 05-19-16The Vanguard Target Retirement series has madeincremental adjustments over time, but the overarchingstrategy is unchanged. The series aims to provideinvestors with a diversified asset mix that will help themmeet their long-term retirement goals. Vanguard'sapproach is founded on a wealth of industry research, andit's boosted by the firm's success as a low-cost index fundprovider. This straightforward series continues to be a toppick and earns a Morningstar Analyst Rating of Gold.

The series' overall stock and bond split has been inplace since mid-2006. The glide path starts with a 90%equity exposure until the investor hits 25 years toretirement. From there, equity exposure graduallydecreases until seven years after retirement, when theglide path plateaus to a 30% stake in equities. The equity/bond breakdown hews closely to the industry average,but subasset allocation is more nuanced. Over the courseof 2015, Vanguard increased the series' international-equity exposure to 40% from 30% and its international-bond exposure to 30% from 20%. The typical competitorallocates about 30% of equities to non-U.S. stocks and15% of fixed income to non-U.S. bonds. The firm's

research shows that investing closer to the global marketcapitalization provides greater diversification and loweraverage volatility.

Management implements the strategy using a leanset of index funds. Just two funds cover the full market-cap and style spectrum of the U.S. and non-U.S. equitymarkets. Two funds cover domestic and internationalbonds across all funds in the series, and a short-terminflation-protected securities fund comes into play in thefive years prior to retirement. International-stockexposure proved to be a drag on performance across theseries in 2015 and in the first months of 2016. Still, allfunds land in the top quartile of their respective peergroups over the three- and five-year periods through April2016. While market movements largely drive results ofthis index-based series, its at-cost pricing provides anenduring edge against the competition, and it remains asound choice for investors.

Address: Vanguard Chester Funds Minimum Purchase: $1000 Add: $1 IRA: —Valley Forge, PA 19482 Min Auto Inv Plan: — Add: —800-662-7447 Sales Fees: No-load



ß® Mutual Funds A

92


Vanguard Target Retirement 2010 Inv TickerVTENX

Yield1.8%


Mstar CategoryTarget-Date 2000-2010

Benchmark 1: Morningstar Lifetime Mod 2010 TR USDBenchmark 2: Morningstar Mod Tgt Risk TR USD






Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.0

14.0

16.0

18.0




Growth of $10,000


& * ) * & * * & & ) Performance Quartile(within Category)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12-16 History21.84 23.06 17.61 20.52 22.31 22.43 24.13 25.60 26.32 24.88 25.34 NAV

. 7.70 -20.67 19.32 11.43 3.37 10.12 9.10 5.93 -0.20 5.22 Total Return %

. -2.02 -2.45 0.34 -0.53 -0.24 -0.49 0.34 0.77 1.38 -1.42 +/- Bmark 1

. -0.94 1.52 -2.45 -0.90 2.78 -1.92 -5.21 1.04 1.59 -3.35 +/- Bmark 2

. 2.11 2.94 2.81 2.49 2.67 2.37 1.75 1.81 1.81 1.89 Income Return %

. 5.59 -23.62 16.51 8.94 0.70 7.76 7.35 4.12 -2.01 3.34 Capital Return %

. 6 37 82 33 8 45 48 7 8 78 Total Rtn % Rank Cat0.18 0.46 0.68 0.50 0.51 0.60 0.53 0.42 0.46 0.48 0.47 Income $. 0.00 0.00 0.00 0.04 0.04 0.04 0.30 0.34 0.92 0.37 Capital Gains $

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Expense Ratio %2.89 3.26 3.34 3.15 2.67 2.46 2.51 2.08 1.83 1.86 1.81 Income Ratio %



2012 5.75 -0.63 3.73 1.02 10.122013 3.52 -1.24 3.36 3.23 9.102014 1.68 3.00 -0.52 1.68 5.932015 1.86 -0.82 -2.59 1.42 -0.202016 2.21 1.93 2.04 -1.02 5.22


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo -1.02 -0.20 -1.40 93 9,8986 Mo 1.00 -0.21 -2.79 92 10,1001 Yr 5.22 -1.42 -3.35 78 10,5223 Yr Avg 3.61 0.27 -0.19 17 11,1245 Yr Avg 5.97 0.14 -1.48 53 13,36410 Yr Avg 4.61 -0.49 -0.63 6 15,69315 Yr Avg — — — — —




Load-AdjReturn %




1 Yr 5.223 Yr 3.61 +Avg Low QQQQ5 Yr 5.97 Avg -Avg QQQ10 Yr 4.61 +Avg -Avg QQQQQIncept 5.31




Portfolio Analysis 11-30-16Total Stocks: 0Share change since 10-31-16 Sector YTD Ret % % AssetsTVanguard Total Bond Marke — — 36.23YVanguard Total Stock Mkt — — 19.29YVanguard Shrt-Term Infl-P — — 16.22TVanguard Total Intl Bd Id — — 15.68TVanguard Total Intl Stock — — 12.56TCMT Market Liquidity Rate — — 0.03



%Assets




Long-Term Erngs 8.96 0.99Book Value -2.91 -2.54Sales -6.46 2.19Cash Flow -4.56 20.98Historical Erngs -55.24 3.22Market Cap %Giant 43.8 Small 5.6Large 30.6 Micro 1.7Mid 18.3 Avg $mil: 31,568

Composition - Net



SectorWeightings

% ofStocks

RelBmark 1









Web Address: www.vanguard.com Management Fee: 0.00%Inception: 06-07-06 Actual Fees: Mgt:0.00% Dist:—Advisor: Vanguard Group Inc Expense Projections: 3Yr:$45 5Yr:$79 10Yr:$179Subadvisor: None Income Distribution: Annually


ß® Mutual Funds A

93


Vanguard Target Retirement 2015 Inv TickerVTXVX

Yield2.0%


Mstar CategoryTarget-Date 2015







Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.0

14.0

16.0

18.0




Growth of $10,000


* & & ) * & * & & & ( Performance Quartile(within Category)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12-16 History12.46 13.06 9.55 11.31 12.42 12.30 13.38 14.77 15.29 14.23 14.51 NAV11.42 7.55 -24.06 21.30 12.47 1.71 11.37 13.00 6.56 -0.46 6.16 Total Return %-1.60 -2.20 -2.23 0.08 -0.42 -1.19 -0.13 2.50 1.01 1.26 -0.94 +/- Bmark 1-1.53 -1.09 -1.86 -0.47 0.14 1.12 -0.68 -1.31 1.67 1.33 -2.41 +/- Bmark 22.71 2.73 2.79 2.89 2.44 2.52 2.42 1.95 1.92 1.96 2.03 Income Return %8.72 4.82 -26.85 18.41 10.03 -0.81 8.94 11.05 4.64 -2.42 4.13 Capital Return %




2012 7.15 -1.52 4.31 1.17 11.372013 4.63 -0.71 4.24 4.34 13.002014 1.76 3.46 -0.71 1.94 6.562015 2.03 -0.64 -3.87 2.14 -0.462016 1.90 1.93 2.77 -0.55 6.16


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo -0.55 0.21 -0.93 76 9,9456 Mo 2.21 0.69 -1.58 61 10,2211 Yr 6.16 -0.94 -2.41 56 10,6163 Yr Avg 4.04 0.47 0.24 13 11,2605 Yr Avg 7.22 0.74 -0.23 31 14,17010 Yr Avg 4.85 -0.31 -0.39 5 16,05915 Yr Avg — — — — —




Load-AdjReturn %




1 Yr 6.163 Yr 4.04 +Avg -Avg QQQQQ5 Yr 7.22 +Avg Avg QQQQ10 Yr 4.85 +Avg Low QQQQQIncept 5.97




Portfolio Analysis 11-30-16Total Stocks: 0Share change since 10-31-16 Sector YTD Ret % % AssetsTVanguard Total Bond Marke — — 30.65YVanguard Total Stock Mkt — — 27.90TVanguard Total Intl Stock — — 18.35YVanguard Total Intl Bd Id — — 13.28YVanguard Shrt-Term Infl-P — — 9.82YCMT Market Liquidity Rate — — 0.00



%Assets




Long-Term Erngs 8.96 0.99Book Value -2.93 -2.18Sales -6.47 1.77Cash Flow -4.58 5.87Historical Erngs -55.27 3.07Market Cap %Giant 43.8 Small 5.6Large 30.6 Micro 1.7Mid 18.3 Avg $mil: 31,499

Composition - Net



SectorWeightings

% ofStocks

RelBmark 1











ß® Mutual Funds A

94


Vanguard Target Retirement 2020 Inv TickerVTWNX

Yield2.0%









Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.0

14.0

16.0

18.0

8.0


HighAverageQQQQQHighest


Growth of $10,000


* & ( * * * & & & * Performance Quartile(within Category)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12-16 History22.21 23.47 16.57 19.96 22.10 21.69 23.83 27.11 28.46 27.15 28.26 NAV

. 7.52 -27.04 23.10 13.12 0.60 12.35 15.85 7.11 -0.68 6.95 Total Return %

. -2.22 -0.77 -1.03 -0.89 -1.14 -0.18 2.87 1.24 1.20 -0.71 +/- Bmark 1

. -1.11 -4.84 1.32 0.79 0.01 0.31 1.54 2.22 1.11 -1.62 +/- Bmark 2

. 1.85 2.34 2.66 2.22 2.32 2.34 2.03 2.00 2.08 2.07 Income Return %

. 5.67 -29.38 20.44 10.90 -1.72 10.01 13.82 5.12 -2.76 4.88 Capital Return %





2012 8.16 -2.13 4.70 1.37 12.352013 5.33 -0.24 4.87 5.13 15.852014 1.81 3.73 -0.80 2.25 7.112015 2.18 -0.58 -4.81 2.71 -0.682016 1.73 1.99 3.27 -0.18 6.95


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo -0.18 0.38 -0.56 50 9,9826 Mo 3.08 1.02 -0.72 31 10,3081 Yr 6.95 -0.71 -1.62 29 10,6953 Yr Avg 4.39 0.59 0.60 3 11,3775 Yr Avg 8.17 0.88 0.72 10 14,80810 Yr Avg 4.99 -0.19 -0.25 2 16,27415 Yr Avg — — — — —




Load-AdjReturn %




1 Yr 6.953 Yr 4.39 High Avg QQQQQ5 Yr 8.17 +Avg Avg QQQQ10 Yr 4.99 High Avg QQQQQIncept 5.84




Portfolio Analysis 11-30-16Total Stocks: 0Share change since 10-31-16 Sector YTD Ret % % AssetsYVanguard Total Stock Mkt — — 34.56TVanguard Total Bond Marke — — 28.31TVanguard Total Intl Stock — — 22.76TVanguard Total Intl Bd Id — — 11.96TVanguard Shrt-Term Infl-P — — 2.38YCMT Market Liquidity Rate — — 0.02



%Assets


Fixed-Income StyleDuration: ExtensiveQuality: High



Composition - Net



SectorWeightings

% ofStocks

RelBmark 1











ß® Mutual Funds A

95


Vanguard Target Retirement 2025 Inv TickerVTTVX

Yield2.0%









Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.5

15.0

17.5

7.5




Growth of $10,000


* * & ) * & * & & & & Performance Quartile(within Category)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12-16 History13.04 13.72 9.27 11.32 12.62 12.27 13.59 15.75 16.53 15.62 16.35 NAV13.24 7.59 -30.05 24.81 13.84 -0.37 13.29 18.14 7.17 -0.85 7.48 Total Return %-3.27 -2.12 0.53 -2.36 -1.32 -0.61 -0.37 1.87 1.13 1.21 -0.91 +/- Bmark 10.29 -1.04 -7.86 3.04 1.50 -0.96 1.25 3.83 2.28 0.94 -1.09 +/- Bmark 22.46 2.38 2.35 2.72 2.21 2.31 2.41 2.11 2.04 2.07 2.09 Income Return %





2012 9.13 -2.61 5.06 1.47 13.292013 6.03 -0.07 5.42 5.77 18.142014 1.78 3.99 -1.02 2.30 7.172015 2.24 -0.41 -5.53 3.08 -0.852016 1.54 1.95 3.71 0.11 7.48


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 0.11 0.23 -0.27 48 10,0116 Mo 3.83 0.86 0.03 34 10,3831 Yr 7.48 -0.91 -1.09 23 10,7483 Yr Avg 4.53 0.50 0.73 3 11,4215 Yr Avg 8.86 0.59 1.41 18 15,28610 Yr Avg 5.00 -0.22 -0.24 7 16,28515 Yr Avg — — — — —




Load-AdjReturn %




1 Yr 7.483 Yr 4.53 High Avg QQQQQ5 Yr 8.86 +Avg Avg QQQQ10 Yr 5.00 +Avg -Avg QQQQIncept 6.39




Portfolio Analysis 11-30-16Total Stocks: 0Share change since 10-31-16 Sector YTD Ret % % AssetsYVanguard Total Stock Mkt — — 39.51TVanguard Total Intl Stock — — 25.86TVanguard Total Bond Marke — — 24.31TVanguard Total Intl Bd Id — — 10.32YCMT Market Liquidity Rate — — 0.01



%Assets


Fixed-Income StyleDuration: ExtensiveQuality: Medium



Composition - Net


Avg Eff Duration1 6.4 YrsAvg Eff Maturity 8.5 YrsAvg Credit Quality AAvg Wtd Coupon 2.88%1 figure provided by fund as of 11-30-16

SectorWeightings

% ofStocks

RelBmark 1











ß® Mutual Funds A

96


Vanguard Target Retirement 2030 Inv TickerVTHRX

Yield2.0%









Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.0

14.016.018.0

8.0


Above AvgAverageQQQQQHighest


Growth of $10,000


* & ( * & * & & * * Performance Quartile(within Category)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12-16 History22.54 23.86 15.54 19.31 21.68 20.92 23.38 27.64 29.04 27.72 29.20 NAV

. 7.49 -32.91 26.72 14.43 -1.27 14.24 20.49 7.17 -1.03 7.85 Total Return %

. -2.21 0.80 -2.89 -1.60 -0.04 -0.43 0.85 1.16 1.27 -1.41 +/- Bmark 1

. -1.14 -10.71 4.95 2.10 -1.86 2.20 6.18 2.28 0.76 -0.72 +/- Bmark 2

. 1.64 1.94 2.48 2.05 2.16 2.39 2.10 2.02 2.06 2.08 Income Return %

. 5.85 -34.85 24.24 12.39 -3.43 11.86 18.39 5.15 -3.09 5.77 Capital Return %





2012 10.04 -3.13 5.43 1.66 14.242013 6.63 0.24 5.88 6.46 20.492014 1.74 4.20 -1.19 2.32 7.172015 2.31 -0.24 -6.31 3.49 -1.032016 1.30 1.92 4.02 0.42 7.85


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 0.43 -0.10 0.05 50 10,0436 Mo 4.46 0.27 0.67 37 10,4461 Yr 7.85 -1.41 -0.72 32 10,7853 Yr Avg 4.58 0.37 0.78 6 11,4395 Yr Avg 9.50 0.30 2.05 17 15,74510 Yr Avg 4.98 -0.33 -0.26 11 16,25915 Yr Avg — — — — —




Load-AdjReturn %




1 Yr 7.853 Yr 4.58 +Avg Avg QQQQQ5 Yr 9.50 +Avg Avg QQQQ10 Yr 4.98 +Avg -Avg QQQQQIncept 5.98







%Assets




Long-Term Erngs 8.96 0.97Book Value -2.91 16.93Sales -6.45 2.18Cash Flow -4.56 -5.26Historical Erngs -55.23 2.43Market Cap %Giant 43.8 Small 5.6Large 30.6 Micro 1.7Mid 18.3 Avg $mil: 31,590

Composition - Net



SectorWeightings

% ofStocks

RelBmark 1











ß® Mutual Funds A

97


Vanguard Target Retirement 2035 Inv TickerVTTHX

Yield2.0%









Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.5

15.0

17.520.0

7.5




Growth of $10,000


& * & ( * & * & & * * Performance Quartile(within Category)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12-16 History13.87 14.62 9.25 11.62 13.09 12.51 14.09 16.98 17.84 16.84 17.74 NAV15.24 7.49 -34.66 28.17 15.14 -2.24 15.16 22.82 7.24 -1.26 8.26 Total Return %-3.04 -2.29 0.66 -2.90 -1.39 0.04 -0.20 0.79 1.44 1.32 -1.80 +/- Bmark 12.29 -1.14 -12.47 6.40 2.81 -2.83 3.12 8.52 2.35 0.53 -0.31 +/- Bmark 22.12 2.09 2.05 2.57 2.03 2.15 2.45 2.30 2.17 2.08 2.11 Income Return %





2012 10.95 -3.60 5.75 1.82 15.162013 7.31 0.40 6.46 7.09 22.822014 1.71 4.46 -1.39 2.36 7.242015 2.35 -0.05 -7.12 3.93 -1.262016 1.07 1.82 4.39 0.78 8.26


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 0.78 -0.39 0.41 54 10,0786 Mo 5.20 -0.20 1.41 47 10,5201 Yr 8.26 -1.81 -0.31 32 10,8263 Yr Avg 4.66 0.36 0.86 9 11,4645 Yr Avg 10.15 0.33 2.70 16 16,21610 Yr Avg 5.09 -0.32 -0.14 10 16,43215 Yr Avg — — — — —




Load-AdjReturn %











%Assets





Composition - Net



SectorWeightings

% ofStocks

RelBmark 1











ß® Mutual Funds A

98


Vanguard Target Retirement 2040 Inv TickerVFORX

Yield2.0%









Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.5

15.0

17.5

7.5




Growth of $10,000


* & ) * & * & & * * Performance Quartile(within Category)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12-16 History22.46 23.77 15.13 19.05 21.50 20.50 23.18 28.32 29.76 28.45 30.21 NAV

. 7.48 -34.53 28.32 15.17 -2.55 15.56 24.37 7.15 -1.59 8.73 Total Return %

. -2.47 1.41 -3.49 -1.54 0.30 -0.15 1.32 1.63 1.25 -1.88 +/- Bmark 1

. -1.16 -12.34 6.55 2.84 -3.14 3.52 10.07 2.26 0.21 0.16 +/- Bmark 2

. 1.65 1.79 2.43 1.93 2.07 2.42 2.16 2.03 2.07 2.11 Income Return %

. 5.83 -36.32 25.89 13.24 -4.61 13.14 22.22 5.12 -3.65 6.63 Capital Return %



0 4 4 9 7 15 3 9 6 21 16 Turnover Rate %106 718 1,154 2,763 4,500 5,758 8,797 13,470 16,482 15,604 17,955 Net Assets $mil


2012 11.32 -3.81 5.97 1.85 15.562013 7.64 0.60 6.77 7.57 24.372014 1.66 4.62 -1.53 2.31 7.152015 2.39 0.13 -7.93 4.26 -1.592016 0.84 1.81 4.72 1.13 8.73


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 1.13 -0.47 0.75 45 10,1136 Mo 5.90 -0.31 2.11 40 10,5901 Yr 8.73 -1.88 0.16 27 10,8733 Yr Avg 4.66 0.38 0.86 16 11,4665 Yr Avg 10.51 0.45 3.06 14 16,47910 Yr Avg 5.26 -0.19 0.03 8 16,70015 Yr Avg — — — — —




Load-AdjReturn %




1 Yr 8.733 Yr 4.66 +Avg Avg QQQQ5 Yr 10.51 +Avg Avg QQQQ10 Yr 5.26 +Avg Low QQQQQIncept 6.21







%Assets





Composition - Net



SectorWeightings

% ofStocks

RelBmark 1











ß® Mutual Funds A

99


Vanguard Target Retirement 2045 Inv TickerVTIVX

Yield2.0%









Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.5

15.0

17.520.0

7.5




Growth of $10,000


* * & ) * & * * & * * Performance Quartile(within Category)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12-16 History14.32 15.09 9.57 12.02 13.50 12.87 14.55 17.76 18.65 17.78 18.89 NAV15.98 7.47 -34.56 28.15 15.19 -2.51 15.58 24.37 7.16 -1.57 8.87 Total Return %-3.01 -2.68 1.71 -4.17 -1.57 0.67 -0.26 1.30 1.91 1.45 -1.97 +/- Bmark 13.03 -1.17 -12.37 6.38 2.86 -3.11 3.54 10.06 2.27 0.22 0.30 +/- Bmark 21.99 2.09 1.99 2.57 2.01 2.12 2.46 2.30 2.16 2.07 2.11 Income Return %





2012 11.34 -3.77 5.95 1.81 15.582013 7.63 0.64 6.73 7.59 24.372014 1.69 4.60 -1.48 2.26 7.162015 2.41 0.10 -7.95 4.30 -1.572016 0.79 1.79 4.82 1.24 8.87


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000





Load-AdjReturn %




1 Yr 8.873 Yr 4.72 +Avg -Avg QQQQ5 Yr 10.54 +Avg Avg QQQQ10 Yr 5.27 +Avg -Avg QQQQIncept 7.27







%Assets





Composition - Net



SectorWeightings

% ofStocks

RelBmark 1











ß® Mutual Funds A

100


Vanguard Target Retirement 2050 Inv TickerVFIFX

Yield1.9%









Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.5

15.0

17.5

7.5




Growth of $10,000


* & ) * & * * & * * Performance Quartile(within Category)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12-16 History22.54 23.86 15.18 19.11 21.40 20.41 23.09 28.19 29.62 28.49 30.39 NAV

. 7.49 -34.62 28.31 15.20 -2.54 15.58 24.34 7.18 -1.58 8.85 Total Return %

. -2.86 1.87 -4.44 -1.58 0.93 -0.35 1.51 2.18 1.62 -2.04 +/- Bmark 1

. -1.14 -12.42 6.54 2.87 -3.13 3.54 10.04 2.29 0.22 0.28 +/- Bmark 2

. 1.64 1.74 2.44 1.94 2.05 2.39 2.24 2.11 1.98 2.06 Income Return %

. 5.85 -36.36 25.87 13.26 -4.59 13.20 22.10 5.06 -3.55 6.79 Capital Return %



0 2 4 8 10 15 4 9 7 18 12 Turnover Rate %35 257 421 1,074 1,810 2,415 3,820 6,052 7,683 8,090 10,165 Net Assets $mil


2012 11.32 -3.79 5.95 1.86 15.582013 7.62 0.60 6.76 7.57 24.342014 1.67 4.61 -1.50 2.31 7.182015 2.36 0.13 -7.94 4.31 -1.582016 0.77 1.81 4.79 1.25 8.85


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000





Load-AdjReturn %




1 Yr 8.853 Yr 4.72 +Avg Avg QQQQ5 Yr 10.54 +Avg -Avg QQQQ10 Yr 5.27 +Avg Low QQQQQIncept 6.27







%Assets





Composition - Net



SectorWeightings

% ofStocks

RelBmark 1











ß® Mutual Funds A

101


Vanguard Target Retirement 2055 Inv TickerVFFVX

Yield2.0%









Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.0

14.0

16.0

18.0



4 4 4 4 4 4 4 Investment StyleEquity

Growth of $10,000


& * * & ( * Performance Quartile(within Category)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12-16 History. . . . 22.78 21.86 24.80 30.35 31.98 30.83 32.91 NAV. . . . . -2.27 15.58 24.33 7.19 -1.72 8.88 Total Return %. . . . . 1.48 -0.42 1.84 2.45 1.62 -2.03 +/- Bmark 1. . . . . -2.86 3.54 10.02 2.31 0.07 0.31 +/- Bmark 2. . . . . 1.72 2.04 1.92 1.83 1.85 2.12 Income Return %. . . . . -3.98 13.54 22.41 5.37 -3.57 6.76 Capital Return %. . . . . 9 48 36 16 53 27 Total Rtn % Rank Cat. . . . 0.18 0.39 0.45 0.48 0.55 0.59 0.65 Income $. . . . 0.04 0.01 0.01 0.00 0.01 0.02 0.00 Capital Gains $. . . . 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Expense Ratio %. . . . 2.73 1.71 2.76 2.39 2.22 2.17 2.27 Income Ratio %. . . . 3 12 3 9 7 18 8 Turnover Rate %. . . . 20 167 479 1,127 1,875 2,445 3,752 Net Assets $mil


2012 11.30 -3.78 5.98 1.84 15.582013 7.62 0.60 6.78 7.55 24.332014 1.71 4.60 -1.52 2.31 7.192015 2.38 0.06 -8.00 4.28 -1.722016 0.78 1.80 4.81 1.26 8.88


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 1.26 -0.39 0.88 46 10,1266 Mo 6.12 -0.48 2.33 48 10,6121 Yr 8.88 -2.02 0.31 27 10,8883 Yr Avg 4.68 0.74 0.88 17 11,4705 Yr Avg 10.51 0.72 3.06 26 16,48310 Yr Avg — — — — —15 Yr Avg — — — — —




Load-AdjReturn %




1 Yr 8.883 Yr 4.68 +Avg -Avg QQQQ5 Yr 10.51 +Avg -Avg QQQQ10 Yr — — — —Incept 10.16




Portfolio Analysis 11-30-16Total Stocks: 0Share change since 10-31-16 Sector YTD Ret % % AssetsTVanguard Total Stock Mkt — — 54.14TVanguard Total Intl Stock — — 35.77TVanguard Total Bond Marke — — 7.05TVanguard Total Intl Bd Id — — 2.97YCMT Market Liquidity Rate — — 0.07



%Assets





Composition - Net



SectorWeightings

% ofStocks

RelBmark 1











ß® Mutual Funds A

102


Vanguard Target Retirement 2060 Inv TickerVTTSX

Yield2.0%


Mstar CategoryTarget-Date 2060+







Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.0

14.0

16.0


——

Not Rated

4 4 4 4 4 Investment StyleEquity

Growth of $10,000


& & ( & Performance Quartile(within Category)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12-16 History. . . . . . 21.81 26.75 28.20 27.21 29.04 NAV. . . . . . . 24.35 7.16 -1.68 8.84 Total Return %. . . . . . . 2.17 2.63 1.80 -2.03 +/- Bmark 1. . . . . . . 10.04 2.27 0.11 0.27 +/- Bmark 2. . . . . . . 1.68 1.73 1.78 2.11 Income Return %. . . . . . . 22.66 5.43 -3.47 6.73 Capital Return %. . . . . . . 1 1 71 21 Total Rtn % Rank Cat. . . . . . 0.32 0.37 0.46 0.50 0.57 Income $. . . . . . 0.01 0.00 0.01 0.02 0.00 Capital Gains $. . . . . . 0.00 0.00 0.00 0.00 0.00 Expense Ratio %. . . . . . 2.99 2.45 2.25 2.19 2.28 Income Ratio %. . . . . . 40 10 11 21 6 Turnover Rate %. . . . . . 56 287 558 819 1,272 Net Assets $mil


2012 — -3.57 6.05 1.82 —2013 7.61 0.60 6.78 7.58 24.352014 1.68 4.63 -1.51 2.27 7.162015 2.38 0.07 -8.00 4.31 -1.682016 0.77 1.79 4.80 1.25 8.84


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 1.25 -0.32 0.87 58 10,1256 Mo 6.11 -0.46 2.32 57 10,6111 Yr 8.84 -2.04 0.27 21 10,8843 Yr Avg 4.67 0.86 0.87 1 11,4685 Yr Avg — — — — —10 Yr Avg — — — — —15 Yr Avg — — — — —

Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat3 Yr (estimated) 4.04 1 0.60 15 Yr (estimated) — — — —10 Yr (estimated) — — — —



Load-AdjReturn %




1 Yr 8.843 Yr 4.67 — — —5 Yr — — — —10 Yr — — — —Incept 9.66




Portfolio Analysis 11-30-16Total Stocks: 0Share change since 10-31-16 Sector YTD Ret % % AssetsTVanguard Total Stock Mkt — — 54.15TVanguard Total Intl Stock — — 35.79TVanguard Total Bond Marke — — 7.02TVanguard Total Intl Bd Id — — 3.00



%Assets





Composition - Net



SectorWeightings

% ofStocks

RelBmark 1











ß® Mutual Funds A

103

Money Market

NTF

LOWER HIGHER

Fidelity® Treasury Only Money Market Fund(FDLXX)

No Transaction Fee 1

Performance3,4,5 Average Annual Total Returns

Monthly (AS OF 12/31/2016) YTD (Monthly) 1 Yr 3 Yrs 5 Yrs 10 Yrs Life

Fidelity® Treasury Only Money MarketFund

0.01% 0.01% 0.01% 0.01% 0.59% 3.06%

CG 3-Month Treasury Bill 0.27% 0.27% 0.11% 0.09% 0.73% 3.24%

Money Market-Taxable 0.09% 0.09% 0.04% 0.03% 0.66% --

Quarter-End (AS OF 12/31/2016)

Fidelity® Treasury Only Money MarketFund

0.01% 0.01% 0.01% 0.59% 3.06%

The performance data featured represents past performance, which is no guarantee of future results.Investment return and principal value of an investment will fluctuate; therefore, you may have a gain or loss whenyou sell your shares. Current performance may be higher or lower than the performance data quoted.

Fund Overview

ObjectiveSeeks as high a level of current income as is consistent with the security of principal and liquidity.

StrategyThe Adviser normally invests at least 99.5% of the fund's total assets in cash and U.S. Treasury securities.Potentially entering into reverse repurchase agreements. Normally investing in securities whose interest is exemptfrom state and local income taxes. Investing in compliance with industry standard regulatory requirements for moneymarket funds for the quality, maturity, liquidity and diversification of investments. The Adviser stresses maintaining astable $1.00 share price, liquidity, and income. In addition, the Adviser normally invests at least 80% of the fund'sassets in U.S. Treasury securities.

RiskYou could lose money by investing in the fund. Although the fund seeks to preserve the value of your investmentat $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed bythe Federal Deposit Insurance Corporation or any other government agency. Fidelity Investments and itsaffiliates, the fund's sponsor, have no legal obligation to provide financial support to the fund, and you shouldnot expect that the sponsor will provide financial support to the fund at any time. The fund will not impose a feeupon the sale of your shares, nor temporarily suspend your ability to sell shares if the fund's weekly liquid assets fallbelow 30% of its total assets because of market conditions or other factors. Interest rate increases can cause theprice of a money market security to decrease. A decline in the credit quality of an issuer or a provider of creditsupport or a maturity-shortening structure for a security can cause the price of a money market security to decrease.

Additional DisclosuresThis description is only intended to provide a brief overview of the mutual fund. Read the fund's prospectus for moredetailed information about the fund.

Morningstar® Snapshot*2

(AS OF 12/31/2016)

Morningstar Category Money Market-Taxable

Risk of this Category

*Data provided by Morningstar

Details

Product Type Government

Fund Inception 1/5/1988

NAV on 12/31/2016 $1.00

Exp Ratio (Gross)

6/29/2016

0.42%

Exp Ratio - Annual or Semi-Annual Report (Net) 7

10/31/2016

0.34%

Minimum to Invest 8 $2,500.00

Portfolio Net Assets ($M)

12/31/2016

$3,985.56

Fund Manager(s)

Primary Manager: Maura J Walsh (since 5/1/2015)

Portfolio Data

7-Day Yield 9

12/31/2016

0.08%

Page 1 of 3 104

aavila

Rectangle




105


Probity Advisors Managed Model Portfolios


Professionally Managed Models:

Probity Advisors offers participants seven professionally managed investment portfolio options—Retirement Income, Ultra

Conservative, Conservative, Moderate Conservative, Moderate, Moderate Aggressive and Aggressive. The models allocate assets

between stocks and bonds consistent with the overriding investment objective for that allocation strategy, whether that be capital

preservation, growth of capital, or moderation of volatility. Each Model Portfolio is based on Modern Portfolio Theory, combining

various asset classes in combinations intended to efficiently maximize return given the risk level selected by the participant. Asset

allocations and fund selections are tactically adjusted as Probity Advisors’ portfolio managers’ perspectives change over the

various economic and business cycles.

106

Fund/Benchmark Index Model/Benchmark Q4 2016 1-Year 3-Year* 5-Year*

Probity Advisors Aggressive Portfolio Aggressive Allocation 2.54% 11.60% 5.28% 11.30%

Probity Advisors Moderate Aggressive Portfolio Moderate Aggressive Allocation 2.90% 11.30% 5.72% 11.21%

Probity Advisors Moderate Portfolio Moderate Allocation 2.52% 10.28% 5.44% 10.27%

Probity Advisors Moderate Conservative Portfolio Moderate Conservative Allocation 2.68% 9.73% 5.38% 9.67%

Probity Advisors Conservative Portfolio Conservative Allocation 2.69% 9.06% 4.98% 8.63%

Probity Advisors Ultra Conservative Portfolio** Ultra Conservative Allocation 1.96% 7.73% 4.45%

Probity Advisors Retirement Income Portfolio** Retirement Income Allocation 1.04% 5.49% 3.55%

S&P 500 TR 3.82% 11.96% 8.87% 14.66%

Barclays US Agg Bond TR -2.98% 2.65% 3.03% 2.23%

*Returns Greater than 1 Year are Annualized.

**Inception date is 4.13.2012

Probity Advisors Professionally Managed Models PerformanceTotal Returns as of 12.31.2016



107

$0

$5,000

$10,000

$15,000

$20,000

$25,000

Jun-10 Jul-11 Aug-12 Sep-13 Oct-14 Nov-15 Dec-16

Growth of a $10,000 Investment (06/30/2010-12/31/2016)*

Performance

Model Name: Probity Advisors Aggressive Portfolio

Model Description

Aggressive Growth: For the investor who has both a high tolerance for

risk and a long investment time horizon. The main objective is high

growth of an investor’s assets. Portfolios may have substantial

fluctuations in value from year to year, making this category unsuitable

for those who do not have an extended investment time horizon.

Average Annualized Returns as of 12.31.2016

Model/Benchmark Q4 2016 1-Year 3-Year** 5-Year**

Probity Advisors Aggressive Portfolio 2.54% 11.60% 5.28% 11.30%

Morningstar Aggressive Tgt Risk 2.15% 11.33% 4.47% 10.51%

*Performance returns calculated by Morningstar Advisors Work Station. The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate, thus an investor's shares, whenredeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. Performance reflects the inclusion of all mutual fund expenses, but does not reflect any fees or expenses related to recordkeeping, advisoryservices or any other cost associated with the administration of the retirement plan. These expenses are disclosed separately. The information, data, analyses and opinions contained herein are provided solely for informational purposes and therefore are not an offer to buy or sell asecurity, and are not warranted to be correct, complete or accurate. Except as otherwise required by law or contracted for through an advisory agreement with the plan sponsor, Probity Advisors, Inc. shall not be responsible for any trading decisions, damages or other losses resultingfrom, or related to, this information, data, analyses or opinions or their use. This report is intended for the sole use by the plan sponsor and is not intended for broader distribution to plan participants. Please read these documents carefully.**Returns greater than 1-year are annualized.

Portfolio Facts as of 12.31.2016

Weighted Expense Ratio 0.14%

Bond Duration 5.01

Average Credit Quality B

Aggressive Portfolio Holdings

Fund Name Ticker Weight

Vanguard Growth Index Admiral VIGAX 21.00%

Vanguard Value Index Admiral VVIAX 21.00%

Vanguard Total Intl Stock Index Admiral VTIAX 17.00%

Vanguard Small-Cap Value Index Admiral VSIAX 14.00%

Vanguard Small-Cap Growth Index Admiral VSGAX 12.00%

Northern Emerging Markets Equity Index NOEMX 5.00%

Federated Instl High Yield Bond Instl FIHBX 4.00%

Goldman Sachs Emerging Mkt Debt Instl GSDIX 3.00%

Vanguard Short-Term Bond Index Admiral VBIRX 2.00%

Fidelity Treasury Only Money Market Fund FDLXX 1.00%

1%

9%

90%

0% 25% 50% 75% 100%

Cash

Bonds

Equity

Target Strategic Asset Mix

$20,451

1%

2%

3%

4%

5%

12%

14%

17%

21%

21%

0% 25% 50% 75% 100%

Cash & Equivalents

Short-Term Bonds

International Bonds

High-Yield Bonds

Emerging Equities

Small Growth Stocks

Small Value Stocks

International Stocks

Large Value Stocks

Large Growth Stocks

Asset Allocation Distribution

MPT/Risk & Return Statistics (3-Yr.) Aggressive Portfolio Benchmark

Alpha 0.88 -

Beta 0.97 -

Sharpe Ratio 0.54 0.45

Standard Deviation 10.31 10.51


108

$0

$5,000

$10,000

$15,000

$20,000

$25,000



Performance

Model Name: Probity Advisors Moderate Aggressive Portfolio

Model Description

Moderate Aggressive Growth: For the moderately aggressive investor

with a reasonably high tolerance for risk and/or longer time horizon.

These investors have little need for current income and seek above-

average growth from their investable assets in exchange for accepting

more risk. The main objective is capital appreciation, and investors

should be able to tolerate fluctuations in their portfolio values.



Probity Advisors Moderate Aggressive 2.90% 11.30% 5.72% 11.21%

Morningstar Moderate Aggressive Tgt Risk 1.39% 10.21% 4.13% 9.18%




Bond Duration 4.63

Average Credit Quality BB

Moderate Aggressive Portfolio Holdings




Vanguard Small Cap Value Index Admiral VSIAX 14.00%








$20,244

MPT/Risk & Return Statistics (3-Yr.) Moderate Aggressive Portfolio Benchmark

Alpha 1.25 -

Beta 1.08 -




1%

16%

83%

0% 25% 50% 75% 100%

Cash

Bonds

Equity


1%

4%

5%

5%

5%

6%

12%

14%

24%

24%

0% 25% 50% 75% 100%

Cash & Equivalents

Emerging Equities

Short-Term Bonds

International Bonds

Small Growth Stocks

High-Yield Bonds


Small Value Stocks

Large Growth Stocks

Large Value Stocks


109

$0

$5,000

$10,000

$15,000

$20,000

$25,000



Performance

Model Name: Probity Advisors Moderate Portfolio

Model Description

Stable Growth: For the investor who desires a broadly diversified

portfolio with an emphasis on long term growth and total return. This

investor will have a higher tolerance for risk and/or a longer time

horizon than more conservative investors. The main objective is to

achieve steady portfolio growth while limiting fluctuations to less than

those of the overall stock markets.



Probity Advisors Moderate Portfolio 2.52% 10.28% 5.44% 10.27%

Morningstar Moderate Tgt Risk 0.38% 8.57% 3.80% 7.45%




Bond Duration 4.15


Moderate Portfolio Holdings









Vanguard Small Cap Growth Index Admiral VSGAX 4.00%


Commerce Bond CFBNX 4.00%


$19,325

MPT/Risk & Return Statistics (3-Yr.) Moderate Portfolio Benchmark

Alpha 0.86 -

Beta 1.22 -




1%

27%

72%

0% 25% 50% 75% 100%

Cash

Bonds

Equity


1%

4%

4%

4%

5%

6%

9%

11%

12%

20%

24%

0% 25% 50% 75% 100%

Cash & Equivalents

Emerging Equities

Small Growth Stocks

Corporate Bonds

International Bonds

High-Yield Bonds


Small Value Stocks

Short-Term Bonds

Large Growth Stocks

Large Value Stocks


110

$0

$5,000

$10,000

$15,000

$20,000

$25,000



Performance

Model Name: Probity Advisors Moderate Conservative Portfolio

Model Description

Growth & Income: For the investor who seeks greater capital

appreciation than the more conservative investor while maintaining a

significant portion of the portfolio in assets that are traditionally

considered more stable. This investor will have a slightly higher risk

tolerance and time horizon than the conservative investor, and is

willing to accept fluctuations in their portfolio value.



Probity Advisors Moderate Conservative 2.68% 9.73% 5.38% 9.67%

Morningstar Moderate Conservative Tgt Risk -0.71% 6.66% 3.26% 5.61%




Bond Duration 3.92


Moderate Conservative Portfolio Holdings





Vanguard Small Cap Value Index Admiral VSIAX 11.00%





Vanguard Small Cap Growth Index Admiral VSGAX 4.00%

Vanguard Short-Term Govt Bd Idx Admiral VSBSX 3.00%



$18,669

MPT/Risk & Return Statistics (3-Yr.) Moderate Conservative Portfolio Benchmark

Alpha 0.75 -

Beta 1.46 -




1%

36%

63%

0% 25% 50% 75% 100%

Cash

Bonds

Equity


1%2%3%4%5%6%7%

9%11%

13%15%

24%

0% 25% 50% 75% 100%

Cash & EquivalentsEmerging Equities

Short-Term Govt. BondsSmall Growth Stocks

International BondsHigh-Yield BondsCorporate Bonds

International StocksSmall Value Stocks

Large Growth StocksShort-Term Bonds

Large Value Stocks


111

$0

$5,000

$10,000

$15,000

$20,000

$25,000



Performance

Model Name: Probity Advisors Conservative Portfolio

Model Description

Balanced: For the investor who seeks a balance of both stability and

capital appreciation from their portfolio. This investor will have either a

moderate time horizon or a slightly higher risk tolerance than the Ultra

Conservative investor. While this model is expected to dampen market

volatility, fluctuations in the values of portfolios may occur from year to

year.



Probity Advisors Conservative Portfolio 2.69% 9.06% 4.98% 8.63%

Morningstar Conservative Tgt Risk -1.84% 4.67% 2.35% 3.46%




Bond Duration 3.57


Conservative Portfolio Holdings














$17,602

MPT/Risk & Return Statistics (3-Yr.) Conservative Portfolio Benchmark

Alpha 1.68 -

Beta 1.46 -




1%

44%

55%

0% 25% 50% 75% 100%

Cash

Bonds

Equity


1%2%

4%5%6%7%8%8%8%

10%18%

23%

0% 25% 50% 75% 100%

Cash & EquivalentsEmerging Equities

Small Growth StocksInternational Bonds

High-Yield BondsCorporate Bonds

International StocksLarge Growth Stocks

Short-Term Govt. BondsSmall Value StocksShort-Term Bonds

Large Value Stocks


112

$0

$5,000

$10,000

$15,000

$20,000

$25,000

Apr-12 Dec-12 Aug-13 Apr-14 Dec-14 Aug-15 Apr-16 Dec-16


Performance

Model Name: Probity Advisors Ultra Conservative Portfolio

Model Description

Capital Preservation, Income and Mild Growth: For the cautious

investor with a low risk tolerance and/or a short time horizon. It is

targeted toward the investor seeking investment stability and income

while also providing for some longer term growth. While fluctuations in

the values of portfolios are expected, the impact is muted relative to

the more aggressive profiles.



Probity Advisors Ultra Conservative 1.96% 7.73% 4.45%

Ultra Conservative Index Benchmark -1.23% 5.01% 2.57%




Bond Duration 3.21

Average Credit Quality BBB

Ultra Conservative Portfolio Holdings














$13,211

MPT/Risk & Return Statistics (3-Yr.) Ultra Conservative Portfolio Benchmark

Alpha 1.53 -

Beta 1.14 -




1%

64%

35%

0% 25% 50% 75% 100%

Cash

Bonds

Equity


1%2%2%3%

5%5%6%

8%8%

17%18%

25%

0% 25% 50% 75% 100%

Cash & EquivalentsSmall Growth Stocks

Emerging EquitiesSmall Value StocksInternational BondsInternational Stocks

Large Growth StocksHigh-Yield BondsCorporate Bonds

Large Value StocksShort-Term Govt. Bonds

Short-Term Bonds


113

$0

$5,000

$10,000

$15,000

$20,000

$25,000

Apr-12 Dec-12 Aug-13 Apr-14 Dec-14 Aug-15 Apr-16 Dec-16


Performance

Model Name: Probity Advisors Retirement Income Portfolio

Model Description

Stable Income & Capital Preservation: For the investor who seeks a

stable stream of income over time with the potential for modest capital

appreciation. The primary objective is to provide a diversified and

stable source of income with lower volatility. While fluctuations in value

may occur, such fluctuations should be minimal relative to more

aggressive profiles.



Probity Advisors Retirement Income 1.04% 5.49% 3.55%

S&P Target Date Retirement Income Index -0.76% 5.01% 3.20%




Bond Duration 3.17

Average Credit Quality BBB

Retirement Income Portfolio Holdings


Vanguard Short-Term Bond Index Adm VBIRX 29.00%












$12,481

MPT/Risk & Return Statistics (3-Yr.) Retirement Income Portfolio Benchmark

Alpha 0.82 -

Beta 0.84 -




1%

74%

25%

0% 25% 50% 75% 100%

Cash

Bonds

Equity


1%1%2%3%3%3%

5%8%

10%13%

22%29%

0% 25% 50% 75% 100%

Cash & EquivalentsSmall Growth Stocks

Emerging EquitiesInternational StocksSmall Value Stocks

Large Growth StocksInternational Bonds

High-Yield BondsCorporate Bonds

Large Value StocksShort-Term Govt. Bonds

Short-Term Bonds


114

Probity Advisors Q1 2017 Professionally Managed Models

Asset Class Fund Name TickerRetirement

IncomeUltra

ConservativeConservative

Moderate Conservative

ModerateModerate Aggressive

Aggressive

Cash & Equivalents Fidelity Treasury Only Money Market Fund FDLXX 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%

Corporate Bonds Commerce Bond CFBNX 10.00% 8.00% 7.00% 7.00% 4.00% 0.00% 0.00%

Emerging Equities Northern Emerging Markets Equity Index NOEMX 2.00% 2.00% 2.00% 2.00% 4.00% 4.00% 5.00%

High Yield Bonds Federated Instl High Yield Bond Instl FIHBX 8.00% 8.00% 6.00% 6.00% 6.00% 6.00% 4.00%

International Bonds Goldman Sachs Emerging Mkt Debt Instl GSDIX 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 3.00%

International Stocks Vanguard Total Intl Stock Index Admiral VTIAX 3.00% 5.00% 8.00% 9.00% 9.00% 12.00% 17.00%

Short-Term Govt Bonds Vanguard Short-Term Govt Bd Idx Admiral VSBSX 22.00% 18.00% 8.00% 3.00% 0.00% 0.00% 0.00%

Large Growth Stocks Vanguard Growth Index Adm VIGAX 3.00% 6.00% 8.00% 13.00% 20.00% 24.00% 21.00%

Large Value Stocks Vanguard Value Index Adm VVIAX 13.00% 17.00% 23.00% 24.00% 24.00% 24.00% 21.00%

Small Growth Stocks Vanguard Small-Cap Growth Index Adm VSGAX 1.00% 2.00% 4.00% 4.00% 4.00% 5.00% 12.00%

Small Value Stocks Vanguard Small-Cap Value Index Admiral VSIAX 3.00% 3.00% 10.00% 11.00% 11.00% 14.00% 14.00%

Short-Term Bonds Vanguard Short-Term Bond Index Adm VBIRX 29.00% 25.00% 18.00% 15.00% 12.00% 5.00% 2.00%


115



Report of Independent Investment Advisor

Probity Advisors, Inc. respectfully submits our Q4 2016 Quarterly Fund Review & Q1 2017 Investment Recommendations. In our capacity as Investment Advisor to the

Investment Committee, we believe the recommended investment options sufficiently meet the investment objectives and guidelines as outlined in the Investment Policy

Statement adopted by your Investment Committee. In conducting our review, we considered several factors, including, but not limited to:

1. Long-Term performance of the current Core Fund List offerings compared to their benchmarks and the relative performance of alternative offerings;

2. A comparison of the Core Fund List’s management expenses relative to other suitable offerings;

3. The universe of funds available through your retirement plan custodian;

4. The comparative risk/return characteristics of the current Core Fund List offerings and alternatives;

5. The tenure of the current and alternative funds’ management; and

6. Inclusion of both actively-managed and passively-indexed offerings on the Core Fund List.

Please note that as a precautionary measure, this quarter, the following funds from the Core Fund List remain on our Watch List:

Name Asset Class Comments

American Century Infl-Adj

Bond InvInflation-Protected Bond

American Century Infl-Adj Bond Inv has posted a strong track record, ranking in the top third

of its peer group on a 3-year basis. We continue to monitor the fund’s volatility and market

sensitivity relative to its peer group.

PIMCO Long Duration

Total ReturnLong-Term Bond

PIMCO Long Duration Total Return Instl’s performance has improved, with the fund now

outperforming its benchmark on a three-year annualized basis while ranking in the top

median of its peer group. We continue to monitor the fund’s market sensitivity.

No funds were added to the Watch List this quarter. A fund’s inclusion on a Watch List is an indication that the fund has violated certain quantitative thresholds we

establish for our review. It should be noted that these violations are often minor and they may fluctuate relative to their benchmark from quarter to quarter. While we

believe the funds continue to be viable options for the Core Fund List, they have objectively violated various standards and, are therefore, receiving additional scrutiny.

While a fund’s continued inclusion on the Watch List may ultimately result in a recommendation that we replace the fund with an alternative, a fund’s initial placement on

the Watch List should not be interpreted in itself as a sell recommendation. Rather, the Watch List serves as an important communication device, intended to provide

Plan Sponsors additional insight into our monitoring process.

During the quarter, the following funds were removed from your plan’s fund line-up:

Fund Name Ticker Asset Class

Templeton Global Bond Adv TGBAX World Bond

Janus Flexible Bond T JAFIX Intermediate-Term Bond

T. Rowe Price Short-Term Bond PRWBX Short-Term Bond

During the quarter, the following funds were added to your plan’s fund line-up:

Fund Name Ticker Asset Class

Goldman Sachs Emerging Mkt Debt Instl GSDIX Emerging Market Bond

Payden Emerging Markets Bond PYEMX Emerging Market Bond

JPMorgan Core Plus Bond R6 JCPUX Intermediate-Term Bond

Funds were mapped according to the following table:

Probity Advisors Q4 2016 Funds Map To Probity Advisors Q1 2017 Funds

Fund Name Ticker Asset Class Fund Name Ticker Asset Class

Templeton Global Bond Adv TGBAX World Bond Goldman Sachs Emerging Mkt Debt Instl GSDIX Emerging Markets Bond

Janus Flexible Bond T JAFIX Intermediate-Term Bond Commerce Bond CFBNX Intermediate-Term Bond

T. Rowe Price Short-Term Bond PRWBX Short-Term Bond Vanguard Short-Term Bond Index Adm VBIRX Short-Term Bond

It is our opinion that the Core Fund List and Professionally Managed Models described in Sections 3 and 4 provide plan participants with substantial access to suitable

investment categories and diversification. It is, therefore, our belief and recommendation that no additional changes are necessary to the investment alternatives in the

plan at this time.

Probity Advisors

Fourth Quarter 2016

Appendix B: Corporate Resolution Adopting Probity Advisors, Inc.Investment Recommendations

Appendix B: Corporate Resolution Adopting Probity Advisors, Inc. Investment Recommendations

Plan Name

Investment Committee Meeting Minutes: _________________________ Date

___________________________________ Quarter, Year

The following members were present, constituting the entire Investment Committee: ______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

1. All the members of the Investment Committee being present, formal notice calling the meeting was dispensed with, and the meeting declared to be regularly called.

2. The following memorandum was then read and ordered to be inserted in these

minutes: “We, the members of the Investment Committee consent to this meeting being held at the above time and place and do waive notice and publication of this meeting, and consent to the transaction of such business, as may have come before it.”

3. Minutes of the last regular meeting were read and, upon a motion duly made,

seconded and carried, were adopted as read.

4. The following resolutions were offered, seconded and unanimously adopted: IT WAS RESOLVED THAT: The (Quarter, Year)_______________________ Investment Advisor retirement plan investment option recommendations as submitted to the Investment Committee are approved with no changes or amendments. A non-response to the Investment Advisor is satisfactory to implement the recommendations. Minutes submitted by: (Name)________________________________________, duly elected and authorized to serve as Secretary of the Investment Committee Signature: ____________________________________________________________________ Dated

PROBITY ADVISORS, INC ®

This report has been compiled by Probity Advisors, Inc. This report is for informational and research purposes only. It is not intended to be construed asindividually tailored advice to participants, as each individual has different investment goals, criteria, and risk tolerances. Probity Advisors relies on industryaccepted, third-party data feeds and research services to generate the attached materials. As such, Probity Advisors cannot guarantee the accuracy,timeliness, or completeness of the information provided. Data is based on information collected from Morningstar, Fidelity Investments, Schwab FinancialCenter, and other industry accepted providers of financial information. It is updated as of the date shown in the section's title, and will vary over time. AlthoughProbity Advisors may compile certain data and provide different classes of or options for investments based on general risk tolerances, objectives, and goals,you should consider your own investment objectives, risks, charges, and expenses of the Fund or investment model carefully before investing (as theinformation contained herein is not intended to be construed as individually tailored advice). This and other information is contained in the Fund's Prospectus,which can be obtained by contacting the respective mutual fund or the Plan’s custodian. You should read the Prospectus carefully before choosing a Fund. Theperformance information contained herein represents past performance. Past performance does not guarantee future results. The investment return andprincipal value of an investment will fluctuate so that your investment, when redeemed, may be worth more or less than the performance data quoted. Currentperformance may be higher or lower than the performance shown here. The most recent month-end performance information for the Fund may be obtainedby contacting the mutual fund company. The total return information does not reflect the deduction of the Sales Load that may apply if the Fund shares werepurchased outside of the Plan and if the Sales Load were reflected, performance would be lower. Performance does not include any plan level expenses such asany recordkeeping, third-party administration, advisory, education or other fees or expenses contracted for by the Plan Sponsor, which may be deducted fromPlan assets and may reduce a participant’s balance.

Documents

Van Oriental Food, Inc. 401K Annual Fund Review: …files.constantcontact.com/6f0c700d001/22ad5c0b-9320-4cc7...Probity Advisors, Inc. 401K Annual Fund Review: 2016 March 2017 Theresa